Economics · International Trade Theories
According to the Stolper-Samuelson theorem, an increase in the relative price of a labor-intensive good will:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Have no distributional impact on factor returns
- 2Reduce real wages and increase the real return to capital
- 3Increase returns to both labor and capital
- 4Increase real wages and reduce the real return to capital✓
Correct answer
Increase real wages and reduce the real return to capital
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