Economics · International Trade Theories
Factor price equalization theorem implies that:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1None of the above
- 2Trade causes the return to human capital to equal the return to physical capital
- 3All workers across countries become equally productive
- 4Free trade causes identical factors in different countries to be paid more nearly the same than they were in autarky✓
Correct answer
Free trade causes identical factors in different countries to be paid more nearly the same than they were in autarky
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