Use the Table for the Following Question

question 45

Multiple Choice

Use the table for the following question
Suppose that all goods are made with two factors-labor and capital. The table below shows the total endowments of each factor in the United States and Canada. Table 4.1
Endowment of Labor and Capital

-Based on Table 4.1,according to the Stolper-Samuelson Theorem,the income distribution effects of free trade in the United States are likely to favor

• A)capital.
• B)labor.
• C)either capital or labor, depending on U.S. productivity.
• D)neither capital nor labor.

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