Mexico Is Relatively Labour-Abundant When Compared with Canada

question 73

Multiple Choice

Mexico is relatively labour-abundant when compared with Canada.Therefore,Mexico has a comparative advantage in _____ compared with Canada.

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

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Definitions:

Nominal Interest Rates

The rate of interest before adjustment for inflation, representing the face value of borrowing costs or investment returns.

Real Interest Rates

Interest rates adjusted for inflation, showing the real cost of borrowing or real yield of saving.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the real cost of borrowing and the real yield to investors.

Nominal Rate

The interest rate before adjustments for inflation, representing the face value of financial transactions.