Assume the Standard Trade Model with Two Countries (Alpha and Beta)

Multiple Choice

Assume the standard trade model with two countries (Alpha and Beta) , two goods (food and drink) , and two factors of production (land and labor) . Further assume that Alpha is relatively labor-abundant and drink is relatively labor-intensive. If the countries engage in free trade, Alpha will:

A) export both food and drink.
B) export drink and import food.
C) import both goods.
D) export food and import drink.