In the Specific Factors Model,a 5% Increase in the Price

question 15

Multiple Choice

In the specific factors model,a 5% increase in the price of food accompanied by a 5% increase in the price of cloth will cause in the welfare of labor,in the welfare of the fixed factor in the production of food,and in the welfare of the fixed factor in the production of cloth.

• A)an increase; a decrease; a decrease
• B)no change; no change; no change
• C)a decrease; an increase; an increase
• D)an increase; an increase; an increase
• E)a decrease; a decrease; a decrease

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Definitions:

Journalizing

The act of recording financial transactions in a company's journal, detailing debits and credits, part of the first step in the accounting cycle.

Fraudulent Activity

Intentional deception or misrepresentation that an individual or entity makes to gain a benefit or advantage.

Double-Entry Bookkeeping

An accounting system where every entry to an account requires a corresponding and opposite entry to a different account.

Fraud

The intentional deception made for personal gain or to damage another individual or entity.