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The Stolper-Samuelson Theorem states that an increase in the relative price of a good increases the real return to:

AThe scarce factor of the nation
BCapital owners exclusively
CThe factor used intensively in the production of that good
DLaborers exclusively regardless of sector

Explanation

Stolper-Samuelson shows trade protection or price rises increase real income of the factor used intensively in that industry.

Submitted by: mcqstutor Team More Economics MCQs →

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