The Two-Country, Multi-Product Model Differs from the Two-Country, Two-Product Model

question 44

Multiple Choice

The two-country, multi-product model differs from the two-country, two-product model in that, in the former

• A) the relative wage ratio will determine the pattern of trade ( which good is exported by which country).
• B) which country will export which product is determined entirely by labor productivity data.
• C) full specialization is likely to hold in equilibrium.
• D) none of the goods are potentially nontraded.
• E) domestic relative prices are not relevant.

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Definitions:

Spore

A reproductive cell that gives rise to individual offspring in plants, fungi, and certain algae and protozoa.

Vascular Tissues

Specialized tissues in plants involved in the transport of water and nutrients.

Fernlike Trees

Trees with a growth pattern or leaf design resembling ferns, often used to describe certain ancient tree species that existed prehistorically.

Mega Fossils

Large fossils that are easily visible without the aid of magnification, typically including bones, shells, and teeth, which can provide significant insights into the life forms that existed in the past.