According to the HO model,
A) everyone automatically gains from trade.
B) the gainers from trade outnumber the losers from trade.
C) the scarce factor necessarily gains from trade.
D) None of the above.
B
You might also like to view...
The confidence problem of the Bretton Woods systems articulated by Robert Triffin refers to
A) the unwillingness of central banks to accumulate currency for fear of not being able to convert it to gold in case a run on the banks occurs. B) consumer fear of stock market instability. C) producer fear of rising wages. D) the lack of convertibility of gold into silver. E) low consumer spending because of balance of payment crises.
Assume that U.S. producers can manufacture cookies at a lower opportunity cost than Mexican producers. If this is the case
A. Mexico would have the comparative advantage in all products compared to the United States. B. Mexico could still have the comparative advantage in cookie production. C. it would still be possible for Mexico to have a comparative advantage in trade for some other products. D. it will not be possible for Mexico to have an comparative advantage in the production of any other products.