?? I. True or False (20 points, 2 point cach) No. Answer 1. Trade is generally h

Question

?? I. True or False (20 points, 2 point cach) No. Answer 1. Trade is generally harmful if there are large disparities between countries in wages. 2. A nation engaging in trade according to the Ricardian model will find its consumption bundle outside its production possibilities frontier. 3. In the specific factors model, labor is defined as a specific factor. 4. International trade can have important effects on the distribution of income because different industries employ different factors of production. 5. Specific tariffs are import taxes stated in specific legal statutes. 6. The infant industry argument was an important theoretical basis for the East-Asian miracle. An appreciation of a country's currency lowers the relative price of its exports and raises the relative price of its imports. 8. A foreign exchange swap is a spot sale of a currency. 7.

Explanation / Answer

1 false

2 true. With trade consumption possibility frontier lies outside ppf

3 false. Usually capital is specific factor

4 true

5 true

6 false. Rather they opened economies

7 false. Exports become dear and imports cgeap

8 false. It includes future resale also

9 false. It is not true in case of fat money

10 true

Was required to answer only 4 parts according to Chegg policy but still answered more. Please like answer

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