Trafe Factor Availability

Question 1

Individual indifference curves

Answer 1

One IC shows the combinations of consumption quantities that lead to an equal level of happiness. The higher the IC, the greater the level of consumption possibilities.

Best no trade point = S0 = C0

Question 2

H-O Theory

Answer 2

A country will export products that use relatively abundant factors intensively and import products that use its relatively scare factors intensively.