The specificfactors model assumes that in each industry
(such as manufacturing and agriculture) there are
Factors of production that are:
A)less productive.
B)outsourced to other nations.
C)fixed or immobile.
D)very scarce and therefore have a high supply price.

Question

The specific­factors model assumes that in each industry
(such as manufacturing and agriculture) there are
Factors of production that are:
A)less productive.
B)outsourced to other nations.
C)fixed or immobile.
D)very scarce and therefore have a high supply price.

Quizplus · Accepted Answer

The specific-factors model assumes that in each industry there are factors of production that are fixed or immobile, meaning they cannot easily be moved from one industry to another. This can include things like specialized machinery or land that is specifically suited for a certain type of production. This assumption is what makes the model useful for understanding how changes in demand or supply can affect different industries and the overall economy.

The Specific­factors Model Assumes That in Each Industry

The Specificfactors Model Assumes That in Each Industry