The StolperSamuelson theorem suggests that, over time, free international trade should lead to:
a. equalization of real wages across the world.
b. greater divergences in real wages across the world.
c. equalization of prices across the world.
d. greater divergences in prices across the world.
Ans: a. equalization of real wages across the world.
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Suppose a paper mill earns $1,000,000 in profits when it pollutes a river, and it can abate pollution at a cost of $A. The effects of the pollution are confined to a single farmer who earns $400,000 if the water he uses from the river is clean and $300,000 if it's polluted. What is the combined profit of both firms without abatement?
A. $1,300,000 B. $900,000 C. $700,000 D. $1,400,000
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Indicate whether the statement is true or false
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A. easily keep B. barely keep C. not come close to keeping
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