Determine whether each of the following statements is true, false, or uncertain, and brieflyjustify your answer No credit will be given for unsupported answers.

1. The model of trade based on internal economies of scale with monopolistic competition predicts that all else equal, countries with smaller domesticmarkets are more likely to be in favor of protecting domestic producers through tradepolicies.
2. With external economies of scale, protecting an infant industry can bepreferable to free trade.
3. The Specific Factors model provides a good explanation for the increasesin income inequality that has been observed in recent decades, both for skill-abundantdeveloped countries and skill-scarce developing countries.