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    Exam 4: Factor Endowments and the Commodity Composition of Trade
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    Which Theory Explains How International Trade Affects the Distribution of Income
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Which Theory Explains How International Trade Affects the Distribution of Income

Question 133

Question 133

Multiple Choice

Which theory explains how international trade affects the distribution of income?


A) the Leontief paradox
B) the factor-proportions theory
C) the Stopler-Samuelson theory
D) the factor-price equalization theory
E) Mercantilism

Correct Answer:

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