QUESTION 1 Consider the model with R&D and Components and with two countries Home and Foresgn Home has comparative advantage in R&D. Which of the statements below is TRUE? Oa The Terms of Trade of Home will worsen over time if Foreign improves in R&D. Ob The Terms of Trade of Home will improve over time if Foreign improves in R&D Oe If Foresgn improves in R&D or Components, gauns from trade could disappear over tume Od The Terms of Trade of Foreign will improve over tume if Home improves in Components

QUESTION 1 Consider the model with R&D and Components and with two countries Home and Foresgn Home has comparative advantage in R&D. Which of the statements below is TRUE? Oa The Terms of Trade of Home will worsen over time if Foreign improves in R&D. Ob The Terms of Trade of Home will improve over time if Foreign improves in R&D Oe If Foresgn improves in R&D or Components, gauns from trade could disappear over tume Od The Terms of Trade of Foreign will improve over tume if Home improves in Components

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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