In the Specific Factors Model, the Effects of Trade on Welfare

question 23

Multiple Choice

In the specific factors model, the effects of trade on welfare are ________ for mobile factors, ________ for fixed factors used to produce the exported good, and ________ for fixed factors used to produce the imported good.

• A) ambiguous; positive; negative
• B) positive; positive; positive
• C) ambiguous; negative; positive
• D) positive; ambiguous; ambiguous
• E) negative; ambiguous; ambiguous

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Definitions:

Clean Hands

A doctrine that prevents individuals from seeking legal remedies if they have engaged in unethical behavior in relation to the subject of their lawsuit.

Specific Performance

A legal remedy requiring a party to fulfill their obligations under a contract, rather than paying damages for breach.

Rare Books

Books that are valuable due to their age, scarcity, historical significance, or unique features.

Interests In Land

Legal rights or claims a person may have in land, including ownership, rental, or usage rights.