The Stolper-Samuelson theorem suggests that, when a country is opened to international Trade, the real income of the country's abundant factor of production will __________And the real income of the country's scarce factor of production __________.
A) rise; also will rise
B) rise; will fall
C) fall; will rise
D) fall; also will fall
Correct Answer:
Verified
Q1: Will the price definition of factor abundance
Q2: Will the gains from trade be larger
Q4: It has been argued that the effect
Q5: Domestic pressures for trade protection appear to
Q6: If relatively capital-abundant country A opens trade
Q7: In the context of the "specific-factors model,"
Q8: (a) In a 2x2x2 context, state the
Q9: If good A costs $10 per unit
Q10: In the situation of "demand reversal" in
Q11: (a) State the Heckscher-Ohlin theorem. Then, in
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