Answer the following statements true (T) or false (F)

Question

1.International trade leads to increased welfare if a nation can achieve a post-trade consumption point lying inside of its production-possibilities frontier.
2.If the U.S. post-trade consumption point lies along its production possibilities frontier, the United States achieves a higher level of welfare with trade than without trade.
3.If productivity in the German computer industry grows faster than it does in the Japanese computer industry, the opportunity cost of each computer produced in Japan increases relative to the opportunity cost of a computer produced in Germany.
4.With constant opportunity costs, a nation will achieve the greatest possible gains from trade if it partially specializes in the production of the commodity of its comparative disadvantage.
5.By reducing the overall volume of trade, import restrictions tend to reduce a nation's gains from trade.

Answer 1

1.False
2.False
3.True
4.False
5.True