Theory based on __________ __________ states that international and interregional differences in production costs occur because of differences in the supply of production factors.

Question

Quizplus · Accepted Answer

The theory of resource endowments states that international and interregional differences in production costs occur because of differences in the supply of production factors such as labor, capital, natural resources, and technology. This theory forms the basis for the concept of comparative advantage, where countries specialize in producing goods that they have a lower opportunity cost of producing, based on their relative factor endowments.

Theory Based on __________ __________ States That International and Interregional

Theory Based on States That International and Interregional