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

question 23

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

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Definitions:

Service Sector

The segment of the economy that includes trade, financial, lodging, education, legal, medical, and other professional occupations.

Aggressive Approach

A strategic or operational stance characterized by taking bold decisions and actions, often involving some level of risk, to achieve objectives.

Price Changes

Adjustments made to the selling price of goods or services in response to market conditions, production costs, or other factors.

Level Of Demand

An assessment of the quantity of a product or service that consumers are willing and able to purchase at various prices over a given period.