Author Question: The difficulty of ascertaining the right second-best trade policy to follow A) reinforces support ... (Read 316 times)

shenderson6 · **on:** Jun 30, 2018

The difficulty of ascertaining the right second-best trade policy to follow

A) reinforces support for the third-best policy approach.
B) reinforces support for increasing research capabilities of government agencies.
C) reinforces support for abandoning trade policy as an option.
D) reinforces support for free-trade options.
E) reinforced support for the domestic market failure argument.

Question 2

In the Heckscher-Ohlin model, when two countries begin to trade with each other

A) the relative prices of traded goods in the two countries converge.
B) relative factor prices in the two countries diverge.
C) benefits from trade are evenly distributed between the two countries.
D) all factors in both countries will gain from trade.
E) all factors in one country will gain, but there may be no gains in the other country.