What Does the Stolper-Samuelson Theorem Predict Will Happen to the Real

question 31

Multiple Choice

What does the Stolper-Samuelson theorem predict will happen to the real returns to factors of production after trade occurs?

• A) Labor and capital must be used together in production, and there is no room for competition for remuneration.
• B) Capital owners always get the "gains from trade."
• C) Resources used intensively in export industries (such as labor in China and capital in the United States) will see an increase in their returns, whereas the resources used intensively in import-competing industries will see a decline in their return.
• D) Poor nations will always get the least returns to their factors of production.

---

Definitions:

Developmental Disabilities

A group of conditions due to an impairment in physical, learning, language, or behavior areas.

Hispanic

Relating to Spanish-speaking countries, especially those of Latin America, or pertaining to people of this cultural background.

Blood-related Risk

Risk factors or conditions that involve the blood and can affect health, such as diseases, genetic predispositions, or environmental exposures.

Sexually Transmitted Infection

Infections transmitted through sexual contact, caused by bacteria, viruses, or parasites, with varying symptoms and treatments.