According to the Stolper-Samuelson Theorem, International Trade for a Nation

question 137

Multiple Choice

According to the Stolper-Samuelson theorem, international trade for a nation with a relative abundance of skilled labor and a relative scarcity of unskilled labor will tend to:

• A) widen or aggravate the income disparity between skilled and unskilled workers.
• B) reduce the income disparity between skilled and unskilled workers.
• C) lower the wages of both groups of workers.
• D) raise the wages of both groups of workers.

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