The Specific Factor Model

Question 1

Raises real incomes of trading countries

Answer 1

Trade

Question 2

It is simply inflation-adjusted income, the amount of disposable income available to consumers

Answer 2

Real income

Question 3

The sum of value added by all the goods and services produced within a particular country

Answer 3

Gross National Income (GNI)

Question 4

Goods are produced using a mix of factors of production

Answer 4

Land
Labor
Capital

Question 5

Is any resources that is used by firms to produce goods and services.

Answer 5

Factor of production

Question 6

Was developed by David Ricardo, the first formal model of international trade

Answer 6

Ricardian model of trade

Question 7

It is one that can be used in producing different products like labor

Answer 7

Mobile Factor

Question 8

SF model is sometimes referred to as _________

Answer 8

Ricardo-Viner model