According to the Stolper-Samuelson Theorem, an Increase in the Price

question 32

Multiple Choice

According to the Stolper-Samuelson theorem, an increase in the price of a country's imports will:

• A)reduce the returns to all factors of production within the country.
• B)raise the returns to all factors of production within the country.
• C)reduce the returns to the factor of production used relatively intensively in the import-competing industry.
• D)raise the returns to the factor of production used intensively in the import-competing industry.

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