Factor Proportions Theory Differs from the Theory of Comparative Advantage

question 52

Multiple Choice

Factor proportions theory differs from the theory of comparative advantage in that the focus of factor proportions theory is on the ________.

• A) usage of the most abundant factors of production, while the focus of the comparative advantage theory is on the productivity of the production process
• B) accumulation of financial wealth in the form of gold by encouraging imports and discouraging exports, while the comparative advantage theory focuses on usage of the most abundant factors of production
• C) productivity of the production process, while the comparative advantage theory focuses on maximization of production and consumption
• D) minimization of trade surpluses, whereas the comparative advantage theory focuses on the mercantilist idea that international trade is a zero-sum game

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Definitions:

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution without violating any constraints.

Flake Size

Flake size refers to the dimensions of individual flakes within a material, often critical in determining the material's properties and applications.

Tree Species

Types or kinds of trees, characterized by distinct genetic traits or botanical classifications.

Tension Modulus

A measure of a material's stiffness or resistance to deformation under tension.