Concepts and Definitions:

-In the monetized version of the Ricardian framework, what is the export condition that determines the basis of trade?

-Graph and explain using the Ricardian model: Consumption gains from trade, Production gains from Trade. Assume that the country is producing only goods X and Y, and that the international relative price of X is lower than the domestic relative price of X.

-Define Mercantilism and use the Mercantilist theory to justify the role of the government in the economy. Provide examples of regulations that illustrate this.

-Define the Stolper-Samuelson Theorem.

-Describe the Leontieff Paradox: name the model being tested and the test performed then explain the paradox.