“A change in the price of a traded good results in a more than proportional change, in the same…
The Stolper–Samuelson theorem links traded-goods prices to factor rewards. An increase in a good's relative price raises the real return to the factor used intensively in…
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“A change in the price of a traded good results in a more than proportional change, in the same direction, in the price of the factor that is used in the production of that good more intensively.” This is the definition of the __________.
Answer and explanation
Correct answer A
The Stolper–Samuelson theorem links traded-goods prices to factor rewards. An increase in a good's relative price raises the real return to the factor used intensively in producing it and reduces the real return to the other factor.
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Jammu & Kashmir and Ladakh SET (JKSET/LASET)