The specific-factors model predicts that in the short-run immigration leads to a decrease in wages and rentals.

True/False

In Ricardian model of trade differences in level productivity explain differences in real wages.

True/False

A foreign direct investment (FDI) occurs when an investor buys a government bond issued by a foreign country.

True/False

The monopolistic competition model can explain why a country may both export and import some specific good.

True/False

In the Ricardian model of trade a country has comparative advantage in production of a good if the country's productivity is higher than another country's productivity.

True/False