Based on Table 4.1, according to the Stolper-Samuelson Theorem, the income distribution effects of ...

Based on Table 4.1, according to the Stolper-Samuelson Theorem, the income distribution effects of free trade in the United States are likely to favor
 
  A) capital.
  B) labor.
  C) either capital or labor, depending on U.S. productivity.
  D) neither capital nor labor.

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Question 2 - As Europe explored monetary union, evidence to date suggests that increased variability in exchange rates
 
  A) reduces foreign trade and investment.
  B) increases foreign trade and investment.
  C) does not seem to have an impact on foreign trade and investment.
  D) hurts foreign investment but not trade.

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Question 3 - Low standards reduce production costs and change a nation's comparative advantage.
 
  Indicate whether the statement is true or false

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Question 4 - Expenditure-reducing policies designed to improve a current account deficit
 
  A) turn domestic spending towards domestic goods.
  B) reduce the overall level of demand in the economy.
  C) turn domestic spending towards foreign goods.
  D) increase the overall level of demand in the economy.