Part I {This or False} Determine whether each of the following statements is true, false or uncertain, and briey justify your answer {2-3 sentences}. Note: No credit will be given for unsupported answers. 1. The specic factors model predicts that countries open to free trade will not be perfectly specialized in the production of one good. 2. Mobile factors of production gain more from trade liberalization than inunobile factors. 3. The Specic Factors model provides a good explanation for the increases in income inequality that have been observed in recent decades, both for skill-abundant developed countries and skill-scarce developing countries. 4. Consider a country with two mobile factors of production, capital {K} and labor [L], producing two goods with perfectly mobile factors of production. If trade liberalization causes the relative price of the capital-intensive good to fall in the Home country, then the losses incurred by Home's capital-owners {as measured in terms of consumption possibilities) may exceed the total gains to Home's laborers