Which factor stands to gain most from free trade?
A) the factor that is used intensively to produce an import competing good
B) the factor that is used intensively to produce a non-traded good
C) the factor that is used intensively to produce an exported good
D) the relatively scarce factor
E) All of the above

Question

Quizplus · Accepted Answer

The factor that is used intensively to produce an exported good stands to gain most from free trade because the country will likely specialize in producing goods that use this factor intensively, increasing its demand and potentially the income of those who supply it.

Which Factor Stands to Gain Most from Free Trade