What Does the Specific­factors Model Allow Us to

question 100

Multiple Choice

What does the specific­factors model allow us to
Analyze?

• A)the returns to factors of production
• B)the allocation of resources between sectors
• C)the returns to factors of production and the allocation of resources between sectors
• D)the allocation of resources to the service sector

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Definitions:

Production Maximizes

The process of adjusting the input of production to achieve the highest possible output level or efficiency.

Optimal Method

The most efficient way of achieving a desired outcome or solving a problem, based on current resources and conditions.

Minimizes Cost

The process or strategy of reducing expenses to the lowest possible level.

Labor Intensive

A production process or industry that requires a large amount of labor input compared to capital input.