Which of the Following Is Explained Well by the Specific-Factor

question 13

Multiple Choice

Which of the following is explained well by the specific-factor approach (Ricardo-Viner model) ?

• A)Steel workers and steel factory owners both lobby for tariffs on imported steel.
• B)Steel workers and agricultural workers join together to oppose tariffs.
• C)Owners of factories in a country with abundant fertile land promote free trade.
• D)Car manufacturers and owners of megafarms collude in lobbying for tariffs on car and wheat imports.
• E)Workers in an automobile factory promote free trade while the factory owners lobby for tariffs on imported cars.

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Definitions:

Interdependent

A relationship between entities in which each is mutually reliant on the other, often used to describe economies or markets that affect one another.

Dominant Strategy

A dominant strategy is a course of action in a strategic game or situation that results in the best outcome for a player, regardless of what the other players decide to do.

Oligopoly

A market structure characterized by a few large firms that dominate the market, often leading to limited competition and higher prices for consumers.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for a degree of market power and product differentiation.