Question

In the specific factors model, the effects of trade on welfare overall are ________ and for fixed factors used to produce the exported good they are ________." positive; positive positive; ambiguous negative; positive positive; negative ambiguous; positive

Answer 1

Positive; Positive

Step-by-step explanation:

The specific factors model was developed by Paul Samuelson and Ronald Jones where labor is defined as a mobile factor while land is specific factor.

In the specific factors model, the effects of trade on welfare overall are positive and for fixed factors used to produce the exported good they are positive."