The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-The human skills theory is similar to the factor abundance theory of explaining the source of comparative advantage, except that the former concentrates only on different aspects of labor.

Question

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5
 
-The human skills theory is similar to the factor abundance theory of explaining the source of comparative advantage, except that the former concentrates only on different aspects of labor.

Quizplus · Accepted Answer

The statement accurately describes the human skills theory, which emphasizes the importance of specialized skills and knowledge in creating comparative advantage. However, the factor abundance theory also takes into account differences in capital and natural resources, in addition to labor, when explaining comparative advantage.

The Table Below Shows the Quantity Demanded (In Thousands) and Quantity