According to the Factor Abundance Theory of Comparative Advantage, Countries

question 100

Multiple Choice

According to the factor abundance theory of comparative advantage, countries have a comparative advantage in producing those goods that

• A) use relatively large amounts of their least abundant factor of production.
• B) use relatively large amounts of their most abundant factor of production.
• C) use proportionately equal amounts of each factor of production.
• D) are in the shortest relative supply.
• E) are in the greatest demand.

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Definitions:

World's Largest

A descriptor for something that is the biggest in its category globally, such as the world's largest country, company, or ocean.

Adherents

Individuals who firmly support or follow a particular doctrine, cause, or leader.

Reported

A term commonly used to indicate that certain information, incidents, or findings have been communicated to authorities or made known through various media.

Compared

Analyzed or examined for similarities and differences between two or more items.