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

Question

1.The imposition of government regulations (clean environment, workplace safety, product safety) on domestic steel companies tends to result in lower production costs and improved competitiveness.
2.The magnification effect suggests that the change in the price of a resource is smaller than the change in the price of the good that uses the resource relatively intensively.
3.According to the specific-factors theory, resources that are specific to import-competing industries tend to lose as a result of trade, while resources specific to export industries tend to gain as a result of trade.
4.Industrial policy includes using governmental subsidies as a tool to provide domestic firms an edge over foreign competitors in domestic and foreign markets.
5.The existence of transportation costs tends to result in increasing gains that a country receives from trade.

Answer 1

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