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According to the Stolper-Samuelson Theorem, International Trade for a Nation

Question 137

Multiple Choice

According to the Stolper-Samuelson theorem, international trade for a nation with a relative abundance of skilled labor and a relative scarcity of unskilled labor will tend to:


A) widen or aggravate the income disparity between skilled and unskilled workers.
B) reduce the income disparity between skilled and unskilled workers.
C) lower the wages of both groups of workers.
D) raise the wages of both groups of workers.

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