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

question 12

Multiple Choice

In the specific factors model,a 5% increase in the price of food accompanied by a 5% 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) no change; no change; no change
• B) an increase; an increase; an increase
• C) a decrease; an increase; an increase
• D) an increase; a decrease; a decrease
• E) a decrease; a decrease; a decrease

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Definitions:

Pairs

Groupings of two related or associated items, often used to study comparisons or contrasts.

Sperm Cells

Male reproductive cells, which contribute half of the genetic material necessary for fertilization of an ovum.

Threadlike Structure

Thin, elongated formations typically found in biological organisms, such as the strands of DNA or muscle fibers.

Chromosome

A threadlike structure made up of genes. In humans, there are 46 chromosomes in every cell except sperm and ova.