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:

Skeptical Audience

A group of people who question or doubt the validity of the information or arguments presented to them.

Persuasive Presentation

A type of presentation aimed at convincing the audience of a particular viewpoint or action through argumentation and evidence.

Long-held Opinions

Beliefs or judgments that an individual has maintained over a significant period.

Induction

The process of formally introducing a new employee to their role, the company culture, and their colleagues.