The Specific-Factors Model Concludes That If There Is a Decrease

question 60

Multiple Choice

The specific-factors model concludes that if there is a decrease in the relative price in (and a contraction 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:

Developed

Refers to a state of advanced economic growth and industrialization characterized by high income per capita and standard of living.

Tolerance

A physiological adaptation in which exposure to a drug or stimulus over time leads to a reduced reaction, necessitating larger doses to achieve the same effect.

Cocaine

A powerful stimulant drug derived from the coca plant, which can lead to serious health issues, dependency, and addiction.

Substance Withdrawal

Symptoms that occur upon the reduction or cessation of intake of addictive substances to which one has become dependent, often leading to significant distress or impairment.