The Specific-Factors Model Concludes That If There Is an Increase

question 22

Multiple Choice

The specific-factors model concludes that if there is an increase in the relative price (and an expansion) of one industry, the factor specific to that industry:

• A) will experience an increase in its marginal product.
• B) will experience a decrease in its marginal product.
• C) will be transferred to other industries.
• D) will have competition as additional units of that specific factor are hired from other industries.

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Definitions:

Longer Healing Times

Extended periods required for the body to recover and repair after injury or surgery compared to average recovery times.

Daily Hassles

Everyday events that people experience as harmful, threatening, or annoying.

Persistent Fears

Ongoing, intense fears that significantly interfere with daily life, often leading to avoidance behaviors.

Headaches

Pain or discomfort in the head, scalp, or neck area, often associated with stress, tension, or medical conditions.