1. Starting from an autarky (no-trade) situation with Heckscher - Ohlin model, if Country H is relatively labor abundant, then once trade begins OA. wages and rents should fall in H. B. wages and rents should rise in H. O C. rent will be unchanged but wages will rise in H. OD. wages should rise and rents should fall in H. OE. wages should fall and rents should rise in H. 2. If the economy is producing at point a on its production possibility frontier, then Part B - Please answer the following Multiple Choice Questions - each question is worth 2 points. A. all of its capital is used, but not efficiently. O B. all of the country's capital is used for one product. OC. all of the country's workers are specialized in one product. OD. all of the country's exports are produced in equal amounts. OE. all of the country's workers are employed. 3. If Gambinia has many workers but very little land and even less productive capital, then, following the Heckscher - Ohlin model, we predict that Gambinia will export A. both labor- and land- intensive goods. OB. capital - intensive goods. OC. land-intensive goods. OD. labor- intensive goods. O E. both capital and land - intensive goods. 4. In the 2-factor, 2 good Heckscher -Ohlin model, trade will the good that uses that factor intensively. OA. benefit; abundant; export OB. benefit; scarce; export OC. harm; scarce; export OD. harm; abundant; import OE. benefit; scarce; import 5. According to the Heckscher - Ohlin model, the owners of a country's OA. a country gains from trade if its exports have a high value added. O B. only the country with the more advanced technology gains from trade. OC. everyone gains from trade. OD. the gainers from trade could compensate the losers and still retain gains. O E. the scarce factor gains from trade and the abundant factor loses. factor and will