The Shipbreakers of Alang Utilize Much Labor and Little Capital

question 23

Multiple Choice

The Shipbreakers of Alang utilize much labor and little capital, thereby supporting the applicability of the

• A) factor proportions explanation of the sources of comparative advantage.
• B) specific factor theory of comparative advantage.
• C) monopolistic competition theory of comparative advantage.
• D) scale economies theory of comparative advantage.
• E) basis of the non-dumping legislation.

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Definitions:

Depreciate

A decrease in the value of an asset over time.

Standard Of Living

A level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a geographic area.

Gold Standard

An economic system in which the value of a country’s paper currency is directly connected to gold.

Japan

An island country located in East Asia, known for its advanced technology, distinctive culture, and significant economic influence globally.