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

question 19

Multiple Choice

In the specific factors model, a 5% increase in the price of food accompanied by a 10% increase in the price of cloth will cause ________ in the welfare of labor, ________ in the welfare of the fixed factor in the production of food, and ________ in the welfare of the fixed factor in the production of cloth.

• A) an ambiguous change; an increase; a decrease
• B) a decrease; an ambiguous change; an ambiguous change
• C) an ambiguous change; an ambiguous change; an ambiguous change
• D) an ambiguous change; a decrease; an increase
• E) an increase; a decrease; an increase

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Definitions:

Automatic recall

The ability to retrieve information from memory effortlessly without conscious effort, often seen in well-learned tasks or facts.

Repetition

The act of doing or saying something again and again, often for learning or mastery.

Rheumatoid arthritis

An autoimmune disorder that causes chronic inflammation of joints, leading to pain, swelling, stiffness, and potential loss of function.

Anti-inflammatory drugs

Medications designed to reduce inflammation and alleviate pain, often utilized in the treatment of conditions like arthritis.