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In the Specific Factor Model,the Effect of an Increase in the Productivity

Question 5

Multiple Choice

In the specific factor model,the effect of an increase in the productivity of labor in the production of cloth will cause a(an) ________ in the quantity of labor used to produce cloth,a(an) ________ in the quantity of labor used to produce food and a(an) ________ in the wage rate.


A) increase; decrease; increase
B) decrease; increase; increase
C) increase; decrease; decrease
D) decrease; increase; no change
E) increase; increase; no change

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