As a general rule, when there are specific factors, owners of factors specific to the importing industry are ______________, whereas the mobile factor owners (such as labor) in that industry are ______________.
A) harmed; benefited
B) benefited; harmed
C) harmed; either benefited or harmed, depending on consumption patterns
D) not affected; harmed

Question

Quizplus · Accepted Answer

Owners of factors specific to the importing industry are harmed because the industry faces competition from imports, reducing demand for its specific factors. Mobile factor owners, like labor, may be either benefited or harmed depending on their ability to move to other industries and their consumption patterns.

As a General Rule, When There Are Specific Factors, Owners