The analyzes the income distribution effects of trade in the short run when resources are immobile among industries ?
Correct answer: C. specific factors theory
- A. Stolpher-Samuelson theory
- B. factor endowment theory
- C. specific factors theory
- D. overlapping demand theory
Explanation
The specific-factors theory studies short-run trade effects when some resources cannot move between industries. Factors specific to an export industry may gain, while factors tied to import-competing industries may lose.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
By reducing the volume of trade transportation costs tend to ?
The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?
Wassily Leontief used an input output table in order to test the ?
The comparative advantage model of Ricardo was based on ?
According to the Heckscher-Ohlin model the source of comparative advantage is a country's ?
Difference in environmental standards or other government regulations among nations ?