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Suppose That Brazil Is Capital Abundant and Chile Is Natural

Question 47

Multiple Choice

Suppose that Brazil is capital abundant and Chile is natural resource abundant.If timber is natural resource intensive and computers are capital intensive,then according to the Stolper-Samuelson Theorem,the incomes of the owners of ________ are likely to rise in Brazil after trade with Chile begins.


A) capital
B) labor
C) natural resources
D) It is impossible to determine which will be favored.

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