Illustrate and Explain, for Each Statement Below, Why the Statement

question 7

Essay

Illustrate and explain, for each statement below, why the statement is either TRUE or False. Assume a two-commodity world in each case.
(a) "If a country has an absolutely fixed production pattern, i.e., resources used
in each industry are completely specific to their respective industry, then this
country cannot experience any welfare gain when moving from autarky to free
trade."
(b) "It is possible that, even if two countries have identical production-
possibilities frontiers, trade between the countries can enhance the well-being
of each country, in comparison with well-being under autarky."

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Definitions:

Situational Behavior

Behavior that is influenced by external conditions or circumstances rather than internal traits or motivations.

Usual Pattern Of Behavior

The regular and typical ways in which an individual acts or reacts in different situations.

Facebook Users

Individuals who have an account on the social media platform Facebook and actively use it for communication, sharing, and interaction.

Introverts

Individuals who prefer solitary activities and get drained by social engagement, often characterized by depth of feeling and thought.