In the Specific Factors Model,an Increase in the World Price

question 22

Multiple Choice

In the specific factors model,an increase in the world price of food will lead to:

• A) an increase in the real earnings of land.
• B) a decrease in the real earnings of land.
• C) no change in the real earnings of land.
• D) a decrease in the nominal wage in the food sector.

---

Definitions:

Family of Orientation

The family into which a person is born or adopted, shaping their early experiences and socialization.

Family of Procreation

The family unit one establishes by marrying and having or adopting children, as opposed to the family of origin into which one is born.

Lower-Middle Class

A socio-economic group situated above the working class and below the upper-middle class, often characterized by moderate income levels, job security, and some educational achievements.

Upper-Middle Class

A socio-economic class characterized by high income, significant educational attainment, and professional careers, but not part of the societal elite.