Factor endowment is _____.
A) the amount of change that patterns of trade undergo over time
B) the degree to which the government allows free trade to exist in its international trade
C) the extent to which different countries possess various factors of production
D) the cost of pursuing one activity at the expense of another given alternative activity

Question

Factor endowment is _____.
A) the amount of change that patterns of trade undergo over time 
B) the degree to which the government allows free trade to exist in its international trade 
C) the extent to which different countries possess various factors of production 
D) the cost of pursuing one activity at the expense of another given alternative activity

Quizplus · Accepted Answer

Factor endowment refers to the extent to which different countries have access to various factors of production (such as labor, capital, natural resources, and technology). This can have a significant impact on a country's comparative advantage in certain industries and its patterns of international trade. Factors such as the abundance or scarcity of certain resources or the level of technological development can influence a country's factor endowment.

Factor Endowment Is _____