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The Theory of Resource Endowment

Question 61

Multiple Choice

The theory of resource endowment:


A) explains why France exports cosmetics, wine, commercial aircraft, and clothing.
B) states that a nation will trade goods that can be produced with the production factor that is most abundant.
C) explains why an automobile can be made either by hand or by a capital-intensive process.
D) explains why transportation costs may be ignored when calculating the costs of imports.
E) none of the above.

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