Economics · International Trade Theories
The Stolper-Samuelson theorem postulates that the imposition of an import tariff by a country will result in:
- 1an increase in the real returns to the scarce factor of production.✓
- 2a decrease in the real returns to the scarce factor of production.
- 3an increase in the real returns to the abundant factor of production.
- 4an increase in the real returns to both the scarce and abundant factors of production.
Correct answer
an increase in the real returns to the scarce factor of production.
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