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12. According to the specific-factors model, in the short run, immigration causes wages to a. Decrease because of increased labor supply b. Increase because there is more competition c. Increase if more high-skilled workers immigrate d. Stay the same (60 points) Indicate whether the given statements are true/false. 1. In the Ricardian model, capital and labor are both mobile across industries. 2. In the Heckscher-Ohlin model, countries trade due to differences in the technology used in production. 3. The specific factors model is a short-run model. 4. In the specific factors model, labor is usually considered to be specific or fixed, while capital is mobile. 5. Trade increases the relative price of exports. 6. Lower indifference curves show consumption bundles with higher levels of utility. 7. When the MPL of labor is constant, PPF is a straight line. 8. Nominal wage measures the wage paid to workers in terms of amount of goods they can purchase. 9. In the Ricardian model, a country can have absolute advantage in the production of both goods. 10. When a foreign resident purchases a good or service from the United States, the transaction is a U.S. import