Mexico Is Relatively Labor-Abundant When Compared with the United States

question 113

Multiple Choice

Mexico is relatively labor-abundant when compared with the United States.Therefore,Mexico has a comparative advantage in _____ compared with the United States.

• A)all goods
• B)goods that are labor-intensive in production
• C)goods that are capital-intensive in production
• D)goods that are land-intensive in production

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Definitions:

Welfare

Welfare denotes governmental support aimed at ensuring the basic physical and material well-being of people, particularly those in need.

Complete Knowledge

Refers to a hypothetical situation where all participants in a market have full and perfect information about products, prices, and other market conditions.

Marginal

Relating to the change or difference resulting from a slight incremental increase or decrease in a variable's level.

Economic Variable

A measurable quantity that represents a component of economic performance or behavior, such as GDP, unemployment rate, or inflation.