In moving from autarky to free trade, the price of the exported good increases and the price of theimported good decreases.True in neither modelTrue in Heckscher-Ohlin ModelTrue in both Ricardian and Heckscher-Ohlin ModelTrue in the Ricardian ModelCountries trade because the productivity of labor differs across countries and industries.True in the Ricardian ModelTrue in the Heckscher-Ohlin modelTrue in both Ricardlan and Heckscher-Ohlilin modelsO True in neither modelsIn moving from autarky to free trade, the opportunity cost of the exported good (in terms of theimported good) increases.True in the Heckscher-Ohlin ModelTrue in both Ricardian and Heckscher-Ohlin modelsTrue in the Ricardian ModelO True in neither modelThe basis for gains from free trade is the concepts ofdifferences in nominal wagesabsolute advantageO comparative advantagedifferences in absolute productivityO O If a country has lower overall productivity levels than its trading partners, then it will:not be able to obtain gains from tradebe unable to exporthave a trade deficithave a lower standard of living than its trading partnersDuring the last decade, employment has grown in all cognitive jobs and has declined in all manualjobs.False.True.Most migrants move from developing to developed nations.False.True.The only reason why firms engage in foreign direct investment is to lower production costs byproducing in labor-abundant countries.FalseTrue.In moving from autarky to free trade, the output of the exporting industry increases and the output ofthe importing industry decreases.True in the Ricardian ModelTrue in both Ricardian and Heckscher-Ohlin modelTrue in neither.True in the Heckscher-Ohlin ModelAll factors gain from international trade.True in neither modelTrue in the Heckscher-Ohlin ModelTrue in both Ricardian and Heckscher-Ohlin ModelTrue in the Ricardian Model

1. The higher prices in the export industry would inspire profit-seeking firms in order to expand…

In moving from autarky to free trade, the price of the exported good increases and the price of the imported good decreases. True in neither model True in Heckscher-Ohlin Model True in both Ricardian and Heckscher-Ohlin Model O True in the Ricardian Model Countries trade because the productivity of labor differs across countries and industries. True in the Ricardian Model True in the Heckscher-Ohlin model True in both Ricardian and Heckscher-Ohlin models O True in neither models In moving from autarky to free trade, the opportunity cost of the exported good (in terms of the imported good) increases. True in the Heckscher-Ohlin Model True in both Ricardian and Heckscher-Ohlin models True in the Ricardian Model True in neither model

In moving from autarky to free trade, the price of the exported good increases and the price of the imported good decreases. True in neither model True in Heckscher-Ohlin Model True in both Ricardian and Heckscher-Ohlin Model O True in the Ricardian Model Countries trade because the productivity of labor differs across countries and industries. True in the Ricardian Model True in the Heckscher-Ohlin model True in both Ricardian and Heckscher-Ohlin models O True in neither models In moving from autarky to free trade, the opportunity cost of the exported good (in terms of the imported good) increases. True in the Heckscher-Ohlin Model True in both Ricardian and Heckscher-Ohlin models True in the Ricardian Model True in neither model

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 45P: Table 23.7 provides some hypothetical data on macroeconomic accounts for three countries represented...

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