The model that shows how the economy adjusts when some factors of production cannot be moved from one industry to another is called the:

Question

Quizplus · Accepted Answer

The fixed-factors model of trade explains how the economy adjusts when factors of production, such as labor and capital, cannot easily be moved from one industry to another. This model contrasts with others that assume more flexibility in the movement of resources between sectors.

The Model That Shows How the Economy Adjusts When Some