Please tell me the true and false of the statement and give some reasons;

Thanks

1. In the "new trade" models, trade induces some exit in the domestic market reducing the number of local firms.

As these firms' gain market shares, their monopoly power increases. Consumers may thus be hurt by trade due

to higher market power and prices.

2. "Free trade may increase economic prosperity but is bad for the working class. For fairer trade, foreign firms

from poor countries must accept the same labour standards as in the rich countries."

4 Trade Policy Quiz [10 points] Mark the correct answer. 1. For small countries, tariffs and quotas are always welfare equivalent. (a) True (b) False 2. For large countries, tariffs and quotas are always welfare equivalent. (a) True (b) False 3. The WTO prohibited tariffs in most industries. (a) True (b) False 4. The existence of imperfect competition) always justifies having tariffs. (a) True (b) False 5. Welfare-reducing trade barriers often receive genuine support from the general public. (a) True (b) False