A country is said to be relatively abundant in capital if it has:
A) a greater absolute amount of capital.
B) a smaller absolute amount of labor.
C) a higher capital-to-labor ratio.
D) a lower capital-to-labor ratio.
E) a zero capital-to-labor ratio.

Question

Quizplus · Accepted Answer

A country is considered relatively abundant in capital if it has a higher capital-to-labor ratio, meaning it has more capital per unit of labor compared to other countries or sectors. This indicates a comparative advantage in capital-intensive production.

A Country Is Said to Be Relatively Abundant in Capital