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

question 33

Multiple Choice

In the specific factors model,the effects of trade on welfare overall are ________ and for fixed factors used to produce the imported good they are ________.

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

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Definitions:

Gross Negligence

An extreme lack of care or failure to act that demonstrates a disregard for the safety or rights of others, potentially leading to legal liability.

Bailment

The transfer of a chattel by the owner to another for some purpose, with the chattel to be later returned or dealt with in accordance with the owner’s instructions.

Reasonable Care

The standard of care that a reasonably prudent person would observe under a given set of circumstances.

Bailee for Reward

A bailee for reward refers to an individual or entity that has temporary possession of someone else’s property in exchange for payment, bound to take care of the property.