Multiple Choice
Use the table for the following question
Suppose that all goods are made with two factors-labor and capital. The table below shows the total endowments of each factor in the United States and Canada. Table 4.1
Endowment of Labor and Capital
-Based on Table 4.1,according to the Stolper-Samuelson Theorem,the income distribution effects of free trade in the United States are likely to favor
A) capital.
B) labor.
C) either capital or labor, depending on U.S. productivity.
D) neither capital nor labor.
Correct Answer:

Verified
Correct Answer:
Verified
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