A country that is capital abundant relative to another country will have which one of the following advantages?
A) a larger capital stock
B) absolutely cheaper capital
C) relatively cheaper capital
D) faster access to capital
E) cheap labor

Question

Quizplus · Accepted Answer

A country that is capital abundant relative to another country will have relatively cheaper capital. This is because the abundance of capital in a country tends to lower the price of using capital (interest rates), making it relatively cheaper compared to countries where capital is scarcer.

A Country That Is Capital Abundant Relative to Another Country