Question: Part II: The Specific Model 1 . Why does not everyone support free trade? 2 . What is the specific factor? 3 . Define the

Part II: The Specific Model
1.Why does not everyone support free trade?
2.What is the specific factor?
3.Define the diminishing marginal product.
4.Why is the production possibility frontier bowed outward?
5.Why is the opportunity cost of production increasing?
6. Graphically show the equilibrium of labor allocation and wage.
7.Why is the relative supply upward sloping?
8.How does the change of relative commodity prices affect the real return of each factor?
9.Graphically show how the equilibrium relative is determined.
10.Why does a proportional change in relative commodity prices have no real effect?
11.Graphically show why trade increases welfare on average.
12.Describe how migration affects the income distribution within a country.

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