Which of the following political activities would the Stolper-Samuelson theorem predict?

Question

Quizplus · Accepted Answer

The Stolper-Samuelson theorem predicts that owners of abundant factors of production (such as land, capital, and skilled labor) will benefit from free trade, while owners of scarce factors of production (such as unskilled labor) will be harmed. Textile workers in South Carolina, who are likely to be unskilled labor, would be hurt by China's membership in the WTO, which would make it easier for China to export cheap textiles, driving down the price of American-made textiles and putting American textile workers out of work. Thus, the Stolper-Samuelson theorem would predict that textile workers in South Carolina would oppose China's membership in the WTO. None of the other options are predicted by the Stolper-Samuelson theorem, as they do not involve a direct conflict between owners of abundant factors of production and owners of scarce factors of production.

Which of the Following Political Activities Would the Stolper-Samuelson Theorem