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Assume That Country A, in the Absence of Trade, Finds

Question 72

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Assume that Country A, in the absence of trade, finds itself relatively abundant in labor and relatively scarce in land.The factor endowment theory reasons that with free trade, the internal distribution of national income in Country A will change in favor of


A) labor.
B) land.
C) both labor and land.
D) neither labor nor land.

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