The Stolper-Samuelson Theorem Suggests That, When a Country Is Opened

question 23

Multiple Choice

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

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Definitions:

Desalination

The process of removing salt and other minerals from seawater to produce fresh water suitable for human consumption or irrigation.

Filtration

A method for separating solids from liquids or gases using a filter medium that allows only the fluid to pass through while retaining the solid particles.

Osmosis

The movement of water through a semipermeable membrane from an area of low solute concentration to an area of high solute concentration.

Distillation

A process of purifying liquids through heating and cooling, separating components based on differences in boiling points.