A country that has relatively large amounts of a particular resource at its disposal
A)will tend to have an absolute advantage
B)will trade the resource for some good in which that country has an absolute advantage
C)will tend to have a comparative advantage in goods that make heavy use of that resource
D)will trade the resource for some good in which that country has a comparative advantage
E)will tend to have a low exchange rate

Question

Quizplus · Accepted Answer

A country with abundant resources will likely have a comparative advantage in producing goods that heavily utilize those resources, as it can produce them more efficiently than other countries.

A Country That Has Relatively Large Amounts of a Particular