According to the Stolper-Samuelson theorem, free trade raises the real return of the nation-s ___________________.
A) relatively abundant factor
B) relatively scarce factor
C) relatively capital-intensive good
D) relatively-labor intensive good

Question

Quizplus · Accepted Answer

The Stolper-Samuelson theorem states that free trade raises the real return of the nation's relatively abundant factor and lowers the real return of the relatively scarce factor. Therefore, choice A is correct as it aligns with the theorem.

According to the Stolper-Samuelson Theorem, Free Trade Raises the Real