Static gains from trade come about because trade causes consumers ...

[stock]

Static gains from trade come about because trade causes consumers and producers to face a different set of prices.
 
  Indicate whether the statement is true or false

Question 2

In the specific factors model, the effects of trade on welfare are ________ for mobile factors, ________ for fixed factors used to produce the exported good, and ________ for fixed factors used to produce the imported good.
 
  A) ambiguous; positive; negative
  B) ambiguous; negative; positive
  C) positive; ambiguous; ambiguous
  D) negative; ambiguous; ambiguous
  E) positive; positive; positive

[amcvicar]

Answer to Question 1

TRUE

Answer to Question 2

A

[stock]

Gracias!

[alvinum]

Excellent