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

question 34

Multiple Choice

In the specific factors model, the effects of trade on welfare overall are ________ and for fixed factors used to produce the imported good they are ________.

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

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Definitions:

Reasonable Reliance

Reasonable reliance involves acting based on the expectation that the information or promises provided by another party are accurate and trustworthy.

Interest in Land

Legal rights or investments in real property, including ownership or the right to use the land under certain conditions.

Suretyship

A contractual arrangement where one party (the surety) guarantees the performance of a second party (the principal) to a third party (the obligee).

Statute of Frauds

is a legal principle that requires certain types of contracts to be written and signed in order to be enforceable.