Which of the following statements about the specific factors model is TRUE?
a. When exports of a product rise, the increase in export revenue is divided equally among mobile and specific factors of production.
b. When imports rise, revenues of firms that compete with imports fall. The decrease in revenue is divided equally among the mobile and specific factors of production.
c. When exports of a product rise, factors specific to exports gain less and mobile factors gain more; when imports rise, factors specific to firms competing with imports gain more and mobile factors gain less.
d. When exports of a product rise, factors specific to exports gain more than mobile factors; when imports rise, factors specific to import competing industries lose more than mobile factors.
Answer: d. When exports of a product rise, factors specific to exports gain more than mobile factors; when imports rise, factors specific to import competing industries lose more than mobile factors.
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Since 1948, the average unemployment rate in the United States has been about
A) 3%. B) 6%. C) 8%. D) 10%.
The above figure that most accurately shows a production function is
A) Figure A. B) Figure B. C) Figure C. D) Figure D. E) Both Figure A and Figure B; Figure A for an economy with an excess of labor and Figure B for an economy with a shortage of labor.