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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.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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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.
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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