A country's effective factor endowment is defined as its:
A) actual factor endowment times factor productivity.
B) actual factor endowment times GDP.
C) factor productivity.
D) actual factor endowment divided by its factor productivity.

Question

Quizplus · Accepted Answer

Effective factor endowment takes into account not only a country's actual factor endowments, but also its factor productivity. Therefore, choice A ("actual factor endowment times factor productivity") is the best answer.

A Country's Effective Factor Endowment Is Defined as Its