The Stolper-Samuelson theorem postulates that: (A) An increase in the relative price of a commodity raises the earnings of the factor used intensively in the production of the commodity. (B) An increase in the relative price of a commodity decreases the earnings of the factor used intensively in the production of the commodity. (C) An increase in the relative price of a commodity raises the earnings of the factor used scarcely in the production of the commodity. (D) A decrease in the relative price of a commodity raises the earnings of the factor used intensively in the production of the commodity.

2 marksInternational EconomicsTheories of international tradeFactor price equalisation and the Stolper-Samuelson theoremModerateabout 1 min

UGC-NET 2025 Question 27: Theories of international trade

The Stolper-Samuelson theorem postulates that:

Tap an option to check your answer.

Answer and worked solution

Checking your account…

Theories of international trade has come up 151 times in 6 exams since 2006.

What this question tests

This question is on Factor price equalisation and the Stolper-Samuelson theorem, part of Theories of international trade in International Economics.

How trade changes returns to factors and whether it equalises them across countries.

TestStop has 12 past-paper questions on this subtopic.

Take this paper as a timed mock More on Factor price equalisation and the Stolper-Samuelson theorem

UGC-NET 2025 Question 27: Theories of international trade

Answer and worked solution

What this question tests

Similar questions from other papers

UGC-NET 2025 Question 27: Theories of international trade

Answer and worked solution

What this question tests

Similar questions from other papers