If tastes are identical between countries, then comparative advantage is determined by: *a. supply conditions only. b.

demand conditions only. c. supply and demand conditions. d. cant tell without more information. The Heckscher-Ohlin assumes that _______ are identical between countries. a. tastes and preferences b. technology levels c. factor endowments *d. both (a) and (b) According to the Heckscher-Ohlin model a. everyone automatically gains from trade *b. the gainers from trade outnumber the losers from trade c. the scarce factor necessarily gains from trade d. none of the above According to the factor price equalization theorem, the __________ factor should oppose free trade policies in any given country, a. abundant *b. scarce c. neither d. cant tell without more information That the division of labor is limited by the size of the market best applies to which explanation of trade: a. Factor endowment theory b. Product life cycle theory *c. Economies of scale theory d. Overlapping demand theory