Author Question: Static gains from trade come about because trade causes consumers and producers to face a different ... (Read 151 times)

stock · **on:** Jun 30, 2018

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