If Country I Is Defined as "Relatively Capital-Abundant" in Relation

question 28

Multiple Choice

If country I is defined as "relatively capital-abundant" in relation to country II by the "price" (or "economic") definition of factor abundance, then the price of labor relative to the price of capital is __________ in country I than in country II, and the Heckscher-Ohlin theorem would suggest that country I would export relatively __________ goods to country II.

• A) higher; capital-intensive
• B) higher; labor-intensive
• C) lower; capital-intensive
• D) lower; labor-intensive

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Definitions:

Male

Referring to the sex that produces small, mobile gametes, typically associated with masculine characteristics in species with sexual differentiation.

Skin Pigmentation

The coloring of a person's skin caused by the amount and type of melanin produced by the skin cells, influencing factors like skin tone and color.

Iron Deposits

Accumulations of iron in the body, which can indicate conditions such as hemochromatosis or be a result of repeated blood transfusions.