In the Long Run, When Factors Are Mobile, an Increase

question 45

Multiple Choice

In the long run, when factors are mobile, an increase in the relative price of a good will increase the real earnings of the factor used intensively in the production of that good. This is known as:

• A) the Heckscher-Ohlin model.
• B) the Stolper-Samuelson theorem.
• C) the Ricardian model.
• D) the specific-factor theorem.

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Definitions:

Credit Sales

Sales for which payment is not received at the time of sale but is expected to be paid at a later date.

Budgeted Accounts Receivable

Forecasted or estimated amounts that a business expects to receive from customers for credit sales.

Credit Sales

Sales made by a business where payment is delayed as per agreed terms, allowing the customer to pay at a later date.

Cash Budget

A forecast of cash inflows and outflows for a business or individual for a specific period of time.