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We relax the factor specificity assumption in the H-O model, which of the following is a false statement? Group of answer choices 1.The H-O model
We relax the factor specificity assumption in the H-O model, which of the following is a false statement?
Group of answer choices
1.The H-O model focuses more on long-run effects of trade.
2.The H-O model predicts a distributional gain from trade.
3.The H-O model predicts all households gain from trade, but by different magnitudes.
4.Factor prices should equal across sectors in the H-O model.
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