Multiple Choice
Which theory explains how international trade affects factor prices?
A) the Leontief paradox
B) the factor-proportions theory
C) the Stopler-Samuelson theory
D) the factor-price equalization theory
E) the trade normalization theory.
Correct Answer:
Verified
Correct Answer:
Verified
Q85: Assume that the U.S. is labor abundant
Q86: The factor-proportions theory identifies the source of
Q87: International trade causes the price paid to
Q88: International trade tends to lower the amount
Q89: Leontief's factor-proportions study found that U.S.:<br>A) imports
Q91: There is no tendency for international trade
Q92: Assume that there are two factors, capital
Q93: According to the Stopler-Samuelson theorem, the abundant
Q94: In general, owners of the abundant factor
Q95: Discuss the role of international trade in