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 for your

answers. Where a question neither directly or indirectly references a speci c

model, both models may be necessary for full credit.

EC440 Specific Factors Model and Heckscher-Ohlin Model

1. Relatively skill-abundant countries export relatively skill-intensive prod-

ucts. (10 points)

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.