In What Way Does the Specific-Factors Model Add to the Conclusions

question 75

Multiple Choice

In what way does the specific-factors model add to the conclusions of the Ricardian model?

• A) In the Ricardian model, only labor is better off with free trade. In the specific-factors model, all resources (labor, land, and capital) are better off with free trade.
• B) In the Ricardian model, a country is better off with free trade. In the specific-factors model, some of a country's resources will be worse off with free trade.
• C) In the Ricardian model, some of a country's resources will be worse off with free trade. In the specific-factors model, some of a country's resources will be better off with free trade.
• D) In the Ricardian model, labor will be worse off with free trade. In the specific-factors model, labor will be better off with free trade.

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Definitions:

Sentient Being

An entity that has the capacity to experience feelings and sensations, such as pain and pleasure.

Well-Being

A state of comfort, health, or happiness that individuals or groups experience.

Health

A state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity, as defined by the World Health Organization.

Peter Singer

A philosopher known for his work in bioethics and effective altruism, emphasizing utilitarian ethical theories.