According to the Factor Endowment Theory,nations Heavily Endowed with Labor

question 53

Multiple Choice

According to the factor endowment theory,nations heavily endowed with labor will:

• A)import more labor intensive goods.
• B)export more labor intensive goods.
• C)have an absolute advantage in labor intensive goods.
• D)have a comparative advantage in capital intensive goods.

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Definitions:

Loan

A sum of money borrowed that is expected to be paid back with interest.

Compounded Annually

Interest on an investment is calculated once a year and added to the principle, increasing the amount the interest is calculated on the following year.

Scholarships

Financial aid awards given to students to support their education, typically based on academic achievement, talent, or other criteria.

Compounded Quarterly

The calculation of interest on both the initial principal and accumulated interest over three-month intervals.