In the specific factors model,an increase in the world price of food will lead to:

Name: In the specific factors model,an increase in the world price of food will lead to:
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

In the specific factors model, an increase in the world price of food, assuming land is a specific factor in the production of food, will lead to an increase in the real earnings of land. This is because the value of the output produced by the land increases, raising the returns to the owners of the land.

In the Specific Factors Model,an Increase in the World Price