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

question 30

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

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Definitions:

N-Br Bond

A chemical bond between nitrogen and bromine atoms.

Electronegativity Difference

This term describes the difference in electronegativity values between two atoms bonded together, influencing the bond type; ranging from covalent to ionic.

C-O Bond

A chemical bond formed between a carbon atom and an oxygen atom, a key feature in many organic and inorganic molecules.

Electronegativity Difference

Electronegativity difference is a measure of the disparity in electronegativity between two bonded atoms, influencing the bond type and polarity.