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13. If India is a large country in world trade, then if it instituted a large set of subsidies for its exports, this must A.

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13. If India is a large country in world trade, then if it instituted a large set of subsidies for its exports, this must A. increase internal prices above the world market rate. B. harm India's real income. C. improve India's real income. D. improve the real income of its trade partners. E. cause retaliation on the part of its trade partners. Use the following Scenario to answer Questions 14-15: Consider two countries, France and the UK, in a H-O model. Both countries produce two goods, cars and ships. There are two factors of production used: labor and capital. In free trade, France exports cars to England. The workers in France protest against free trade between France and UK. 14. From the information given above you would infer that A. The UK is relatively abundant in labor B. France is relatively labor abundant C. wages in the UK fall as a result of ee trade D. Not enough information is given to infer about the factor abundance. E. None of above is correct. 15. From the information given above you would infer that the production of cars is a relatively labor-intensive activity. the production of ships is a relatively labor-intensive activity. both products are labor-intensive activities. Not enough information is given to infer about the factor intensity. None of above is correct. $11.50!??? Use the information from the table below to answer Question 16: Unit Labor Requirements Fridges Rice Australia 20 10 Japan 30 15 16. Given the information in the table above, A. Australia has a comparative advantage in fridges. B. Japan has a comparative advantage in fridges. C. neither country has a comparative advantage in fridges. D. Australia has a comparative advantage in both fridges and rice. E. neither country has an absolute advantage in rice

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