In the Specific­factors Model, an Increase in the Price of

question 15

Multiple Choice

In the specific­factors model, an increase in the price of
The manufactured good will cause:

• A)an increase in the wage in the manufacturing sector.
• B)capital to move from the agricultural to the manufacturing sector.
• C)land to move from the manufacturing to the agricultural sector.
• D)a decrease in the wage in the agricultural sector.

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Definitions:

Utility

A measure in economics of the satisfaction or benefit derived by consuming a product or service.

Total Utility

The total satisfaction or benefit derived by consuming a product or service; it increases as more units are consumed, up to a certain point.

Satisfaction

A measure of how products or services meet or surpass customer expectations.

Consumption

The use of goods and services by households or individuals, typically as it contributes to economic measures like GDP.