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.
A
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Discount lending ties into the Fed's function of:
A. regulation of banking. B. open market operations. C. lender of last resort. D. the government's bank.
The sum of current account surplus and capital account surplus is zero.
Answer the following statement true (T) or false (F)
Within a market economy, some industries may be declining while other industries may be expanding. This indicates that:
A. producers are not maximizing profits. B. productive resources are being reallocated. C. factors of production are scarce. D. incomes are declining.
As the variable on the Y-axis falls the variable on the X-axis falls. The relationship between X and Y is said to be positive.
Answer the following statement true (T) or false (F)