If the Price of the Capital -Intensive Product Rises More

question 10

Multiple Choice

If the price of the capital -intensive product rises more than does the price of the land- intensive product, then

• A) demand will shift away from the capital-intensive product, and its production will decrease.
• B) the relative price of the capital-intensive product will fall to some point between the pretrade relative prices.
• C) the country that exports the capital-intensive good will lose its comparative advantage.
• D) demand will shift away from the capital-intensive product, and its production will decrease relative to that of the land-intensive product.
• E) the production of the capital-intensive product will decrease, but by less than production of the land-intensive product.

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Definitions:

Posttraumatic Growth

Beneficial mental growth that occurs through overcoming difficult life situations.

PTSD

Post-Traumatic Stress Disorder, a mental health condition triggered by experiencing or witnessing a terrifying event, leading to lasting intense fear, helplessness, or horror.

Emotional Distress

A state of emotional suffering characterized by feelings of sadness, anxiety, or distress, often in response to specific stressors or experiences.

Intrusive Recollections

Unwanted and repeated memories of traumatic events that vividly come back to a person's mind, causing distress.