A difference in relative commodity prices between nations can be based on a difference in:
A)technology
B)factor endowments
C)tastes
D)all of the above

Question

Quizplus · Accepted Answer

The relative commodity prices between nations can be based on a difference in technology, factor endowments, and tastes. Technology determines the efficiency and productivity of the production process, while factor endowments refer to the availability and quality of resources such as labor, land, and capital. Tastes refer to the preferences and demands of consumers in different countries. All three factors can influence the comparative advantage and competitiveness of a country in producing certain goods, resulting in differences in relative commodity prices.

A Difference in Relative Commodity Prices Between Nations Can Be