Stolper-Samuelson theorem states that when an economy shifts from self- sufficiency to free trade Question 5 options: A) the real income of factors used relatively intensively in the expanding export industries rises, and the real income of the factors used relatively intensively in the shrinking import-competing industries falls. B) distribution of real income of factors remain unchanged. C) the real income of factors used intensively in the expanding expor industries rises but the real income of the factors used relatively intensively in the shrinking import-competing industries remain unchanged. D) the real income of factors used relatively intensively in the expanding export industries falls, and the real income of the factors used relatively intensively in the shrinking import-competing industries rises.
Stolper-Samuelson theorem states that when an economy shifts from self- sufficiency to free trade Question 5 options: A) the real income of factors used relatively intensively in the expanding export industries rises, and the real income of the factors used relatively intensively in the shrinking import-competing industries falls. B) distribution of real income of factors remain unchanged. C) the real income of factors used intensively in the expanding expor industries rises but the real income of the factors used relatively intensively in the shrinking import-competing industries remain unchanged. D) the real income of factors used relatively intensively in the expanding export industries falls, and the real income of the factors used relatively intensively in the shrinking import-competing industries rises.
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Transcribed Image Text:Stolper-Samuelson theorem states that when an economy shifts from self-
sufficiency to free trade
Question 5 options:
A) the real income of factors used relatively intensively in the
expanding export industries rises, and the real income of the factors
used relatively intensively in the shrinking import-competing
industries falls.
B) distribution of real income of factors remain unchanged.
C) the real income of factors used intensively in the expanding export
industries rises but the real income of the factors used relatively
intensively in the shrinking import-competing industries remain
unchanged.
D) the real income of factors used relatively intensively in the
expanding export industries falls, and the real income of the factors
used relatively intensively in the shrinking import-competing
industries rises.
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