As Relative Prices in Various Industries Change Due to Trade

question 112

Multiple Choice

As relative prices in various industries change due to trade, the marginal product of fixed resources used in the expanding industry __________, and the marginal product of fixed resources used in the contracting industry __________.

• A) rises; falls
• B) remains the same; remains the same
• C) changes by exactly the same percentage; changes by exactly the same percentage
• D) falls; rises

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Definitions:

Pyruvate

A critical molecule in cellular metabolism that marks the end of glycolysis and the starting point for the Krebs cycle in aerobic respiration or fermentation in anaerobic conditions.

NAD+

Nicotinamide adenine dinucleotide, a coenzyme found in all living cells that is critical in metabolic processes, particularly in redox reactions.

NADH

Nicotinamide adenine dinucleotide (NADH) serves as an electron carrier, playing a crucial role in cellular energy production during the process of oxidative phosphorylation.

Electron Transfer Phosphorylation

Process in which electron flow through electron transfer chains sets up a hydrogen ion gradient that drives ATP formation.