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

question 50

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

Distinguish between elastic, inelastic, and unitary elasticity of demand.

Identify factors that affect the elasticity of demand for goods and services.

Understand how the time period affects the elasticity of demand.

Comprehend the effects of market definitions and availability of substitutes on demand elasticity.

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Definitions:

Disagreement

A situation where two or more parties have a difference in opinion or perspective.

Disharmony

A lack of agreement or consistency, often leading to conflict or disorder within a group or system.

Groups

Collections of individuals united by certain relations or shared interests.

Ideas

Thoughts, concepts, or suggestions about possible courses of action or solutions to problems.