Question
Explain why each of the following statements are true, false, or uncertain. Your answers should be a few sentences each and give as full an
Explain why each of the following statements are true, false, or uncertain.
Your answers should be a few sentences each and give as full an explaination
as possible. Use only the models discussed in Lectures 5 and 6 (EC440
Specific Factors Model and Heckscher-Ohlin Mode) for your
answers. Where a question neither directly or indirectly references a specific
model, both models may be necessary for full credit.
1. Relatively skill-abundant countries export relatively skill-intensive prod-
ucts.
2. Factors of production that are stuck in one sector always lose from
trade.
3. The global trend in income inequality are consistent with the Stolper-
Samuelson theorem's predictions.
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