In the Specific Factors Model, a 5% Increase in the Price

question 48

Multiple Choice

In the specific factors model, a 5% increase in the price of food accompanied by a 5% increase in the price of cloth will cause wages to ________, the production of cloth to ________, and the production of food to ________.

• A) increase by more then 5%; increase; remain unchanged
• B) increase by 5%; remain unchanged; remain unchanged
• C) remain constant; decrease; decrease
• D) remain constant; increase; increase
• E) increase by less then 5%; decrease; increase

---

Definitions:

Secondary Ecological Succession

The process through which established communities are replaced by new ones in an area where a disturbance has destroyed the previous ecosystem but left the soil intact, fostering new growth cycles.

Second-growth Forest

A forest that has re-grown after a major disturbance, such as logging or fire, and differs from the original vegetation in species composition.

Storehouse

A room or building where goods, commodities, or provisions are stored.

Forested Land

Areas of land predominantly covered by forests, which serve as habitats for diverse species and play a critical role in carbon sequestration.