If Country a Is Well-Endowed with Natural Resources but a Small

Multiple Choice

If country A is well-endowed with natural resources but a small population while B is endowed with much labor but little land and few natural resources,then trade theory predicts that

A) A and B will not trade with each other, as neither can produce enough goods to export
B) A will gain more from trade than B
C) The price of labor-intensive goods will fall in country B after trade
D) Trade will occur, but wages will fall in country A
E) Wages and land values will rise in both countries if they trade