In the Specific Factor Model,the Effect of an Increase in the Productivity

question 5

Multiple Choice

In the specific factor model,the effect of an increase in the productivity of labor in the production of cloth will cause a(an) ________ in the quantity of labor used to produce cloth,a(an) ________ in the quantity of labor used to produce food and a(an) ________ in the wage rate.

• A) increase; decrease; increase
• B) decrease; increase; increase
• C) increase; decrease; decrease
• D) decrease; increase; no change
• E) increase; increase; no change