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151One commonly accepted explanation of the Leontief paradox is that the United States is abundant in skilled labor.

True

False

152The Stolper-Samuelson theorem indicates that an increase in the relative price of a good will cause the real earnings of labor

and capital to move in opposite directions.

True

False

153The Stolper-Samuelson theorem states that with trade, the abundant factor benefits and the scarce factor loses.

True

False

154Taking part in free trade benefits everybody.

True

False

155The Heckscher-Ohlin theory and the Stolper-Samuelson

theorem together lead to the conclusion that a country's abundant factor gains and its scarce factor loses from international trade.

True

False

156During the 1990s, U.S. agricultural net exports were approximately zero.

True

False

157The Heckscher-Ohlin model cannot explain trade patterns among countries with similar labor productivities and similar

wages such as the United States and Switzerland.

True

False

158After controlling for productivity differences, the sign test confirms the findings of the Heckscher-Ohlin model.

True

False

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