Question 3b-3 The Heckscher-Ohlin model rules out the classical model's basis for trade by assuming that is (are) identical between countries. Factor endowments Factor intensities Technology. Opportunity costs.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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QUESTION 6
Question 3b- 3
The Heckscher-Ohlin model rules out the classical
model's basis for trade by assuming that
is
(are) identical between countries.
Factor endowments
Factor intensities
Technology.
Opportunity costs.
Transcribed Image Text:QUESTION 6 Question 3b- 3 The Heckscher-Ohlin model rules out the classical model's basis for trade by assuming that is (are) identical between countries. Factor endowments Factor intensities Technology. Opportunity costs.
QUESTION 7
Question 3b- 4
Which of the following is TRUE regarding gains from
trade?
I. Exposure to new relative prices does not enhance
the welfare of the country.
II. A country will only gain from trade if production
patterns change amongst the trading countries.
II. Specialization occurs according to the different
relative prices leading to gains.
IV. Trade
allows
countries
to
reach
higher
indifference curves than in autarky.
Statements I and II.
Statements Il and III.
Statements IIl and IV.
Statement II only.
Transcribed Image Text:QUESTION 7 Question 3b- 4 Which of the following is TRUE regarding gains from trade? I. Exposure to new relative prices does not enhance the welfare of the country. II. A country will only gain from trade if production patterns change amongst the trading countries. II. Specialization occurs according to the different relative prices leading to gains. IV. Trade allows countries to reach higher indifference curves than in autarky. Statements I and II. Statements Il and III. Statements IIl and IV. Statement II only.
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