The Stopler-Samuelson Theory Suggests That

question 20

Multiple Choice

The Stopler-Samuelson Theory suggests that

• A) Owners of capital tend to gain from trade
• B) Countries will have a comparative advantage in goods produced using factors in which the country is abundant
• C) Trade increase the real incomes of owners of the abundant factor of production relative to those of the owners of the scarce factor
• D) Commodity prices tend to fall relative to the price of manufactured goods
• E) Tariff protection can benefit a country which is large enough to influence the world price of traded goods
• F) Mexico

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