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Gravel Is Made by Hand in Nepal, but by Machine

Question 14

Multiple Choice

Gravel is made by hand in Nepal, but by machine in the U.S.because


A) The marginal product of labor is higher in Nepal than in the U.S.A
B) Capital is much cheaper in the U.S.than in Nepal
C) Of consumer preferences
D) The relative prices of labor and capital differ so dramatically in the two countries

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