When the Demand for Products Competing with Imports Falls, Demand

question 64

Multiple Choice

When the demand for products competing with imports falls, demand for the specific factors used in their production falls and:

• A) the relative prices (earnings) of these specific factors will fall disproportionally.
• B) the relative prices (earnings) of these specific factors will rise disproportionally.
• C) the relative prices (earnings) of these specific factors will fall by the same rate as for all resources.
• D) the employment of these specific factors will rise disproportionally.

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Definitions:

Signals

In communication, signals are transmitted information or stimuli that convey messages between individuals or systems.

Myelin Sheath

A fatty layer that surrounds the axons of some neurons, providing insulation and improving the speed of electrical impulses.

Axons

Long, threadlike parts of nerve cells along which impulses are conducted from the cell body to other cells.

Fatty Material

Substances composed of lipids, such as fats and oils, that are important for energy storage and cell structure in living organisms.