In the specific-factors model, it is assumed that labor: cannot move from one se
ID: 1198924 • Letter: I
Question
In the specific-factors model, it is assumed that labor:
cannot move from one sector to the other.
cannot move within a sector.
can move freely between the manufacturing and agricultural sectors.
can move freely from the manufacturing sector to the agricultural sector, but not from the agricultural sector to the manufacturing sector.
A.cannot move from one sector to the other.
B.cannot move within a sector.
C.can move freely between the manufacturing and agricultural sectors.
D.can move freely from the manufacturing sector to the agricultural sector, but not from the agricultural sector to the manufacturing sector.
Explanation / Answer
In the specific-factors model, it is assumed that labor
c.
can move freely between the manufacturing and agricultural sectors.
Because labor is movable factor of production that will move from one sector to another freely based demand and supply needs and skills.
can move freely between the manufacturing and agricultural sectors.