Both products and increases in consumer welfare

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Evaluate whether the following statements are True or False, and provide a brief explanation

1. In the classic Ricardian model, international trade can lead to increases in the world output of both products and increases in consumer welfare in both countries.

2. An increase in labor endowment will have the same effect of the Ricardian PPF as an improvement in technology.

3. According to the H-O model, the patterns of trade are determined by the relative marginal productivity of labor to capital.

Reference no: EM13798208

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