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In General, a Capital-Abundant Country (Such as the United States)

Question 96

Multiple Choice

In general, a capital-abundant country (such as the United States) tends to specialize in capital-intensive industry and export capital-intensive products, and import labor-intensive products.This statement is an illustration of the ____________________ of comparative advantage.


A) commodity terms of trade theory
B) supply and demand theory
C) diminishing returns theory
D) factor-sourcing theory
E) factor endowment theory

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