18. In the Heckscher-Ohlin model, when two countries begin to trade with each other
a. the relative prices of traded goods in the two countries converge.
b. the relative factor prices in the two countries diverge.
c. all factors in both countries will gain from trade.
d. all factors in one country will gain, but there may be no gains in the other country.
e. benefits from trade are evenly distributed between the two countries.
19. In the Heckscher-Ohlin model, when there is an international-trade equilibrium
a. the workers in the capital-abundant country will earn less than those in the capital-scarce country.
b. the capital-abundant country will charge less for the capital intensive good than the price paid by the capital-scarce country for the capital-intensive good.
c. the capital-abundant country will charge more for the capital intensive good than the price paid by the capital-scarce country for the capital-intensive good.
d. the workers in the capital-abundant country will earn more than those in the poor country.
e. the relative price of the capital intensive good in the capital-abundant country will be the same as that in the capital-scarce country.
18. In the Heckscher-Ohlin model, when two countries begin to trade with each other
a. the relative prices of traded goods in the two countries converge.
b. the relative factor prices in the two countries diverge.
c. all factors in both countries will gain from trade.
d. all factors in one country will gain, but there may be no gains in the other country.
e. benefits from trade are evenly distributed between the two countries.
19. In the Heckscher-Ohlin model, when there is an international-trade equilibrium
a. the workers in the capital-abundant country will earn less than those in the capital-scarce country.
b. the capital-abundant country will charge less for the capital intensive good than the price paid by the capital-scarce country for the capital-intensive good.
c. the capital-abundant country will charge more for the capital intensive good than the price paid by the capital-scarce country for the capital-intensive good.
d. the workers in the capital-abundant country will earn more than those in the poor country.
e. the relative price of the capital intensive good in the capital-abundant country will be the same as that in the capital-scarce country.