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True or False
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1.
Heckscher-Ohlin theory predicts that a country that is relatively abundant in land will have a comparative advantage in the production of goods that use land intensively.
A)TRUE
B)FALSE
2.
Increasing marginal costs of production are more realistic than constant marginal costs of production.
A)TRUE
B)FALSE
3.
With bowed-out production-possibility curves (ppc), the best that a country can do, without trade, is to move production to the point where the ppc touches the highest community indifference curve.
A)TRUE
B)FALSE
4.
The amount that an importing country gains from trade is completely dependant on the slope of the exporting country’s community indifferent curve.
A)TRUE
B)FALSE
5.
Trade with increasing marginal costs is a zero-sum activity, while trade with constant marginal costs is a positive-sum activity.
A)TRUE
B)FALSE





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