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

Question

Quizplus · Accepted Answer

A labor-abundant country will have relatively cheaper labor compared to a country that is not labor-abundant, due to the higher supply of labor relative to demand.

A Country That Is Labor Abundant Relative to Another Country