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

question 10

Multiple Choice

In the specific factors model,a 5% increase in the price of food accompanied by a 1% 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) an ambiguous change; a decrease; an increase
• C) an ambiguous change; an ambiguous change; an ambiguous change
• D) a decrease; an ambiguous change; an ambiguous change
• E) an increase; a decrease; an increase

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Definitions:

Industrial Psychologist

A professional who applies psychological theories and principles to the workplace, aiming to improve productivity, select and train employees, and enhance job satisfaction.

Classical Conditioning

An educational method where two signals are consistently linked together, resulting in a reaction initially triggered by the second signal, ultimately being provoked by just the first signal.

Pavlov

A Russian physiologist known for his work in classical conditioning, famously demonstrated through experiments with dogs salivating at the sound of a bell.

US

Abbreviation for the United States, a country in North America.