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Suppose That Country 1 Is Capital Abundant Relative to

Question 97

Multiple Choice

Suppose that country 1 is capital abundant relative to
Country 2.Both produce two goods (X and Y) .Factor­
Intensity reversal occurs whenever:


A) X is capital intensive in country 1 and labor intensive in country 2.
B) X is capital intensive in both countries.
C) Y is capital intensive in both countries.
D) X is capital intensive in country 1, and Y is labor intensive in country 2.

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