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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