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1.Demonstrate the theory of comparative advantage in the Heckscher-Olin (HO) theory of international trade. (40 marks) (b) Illustrate the two (2) implications on a) factor price equalization and b) income distribution from the Heckscher-Ohlin (HO) theorem. (30 marks) (C) Do transport costs and technology (product cycle) matter in international trade? 

2. The table below gives you some information about an individual's total and marginal utility for brownies. Fill in the blanks using the information shown. Number of brownies Total utility Marginal utility 0 1 a) 14 14 2 29 b) 15 3 45 c) 4 d) 12 5 67 e) Part 2 (1 point) Diminishing marginal utility begins when you consume brownie number > 1st attempt 9 OF 10 QUESTIONS COMPLETED.

3.Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply. Government Purchases Transaction Consumption Investment Net Exports Uncle John receives check from the federal government for unemployment insurance benefits. Uncle Henry buys a new refrigerator from domestic manufacturer. Ford sells a Mustang from its inventory to the Martinez family. Honda expands its factory in Ohio. 00000000 10||0||0|0 You purchase a box of Belgian chocolate. Your parents buy new house from a local builder. You pay a hairdresser for a haircut. Texas hires public middle school teachers.