Multiple Choice
In the factor-proportions theory:
A) the production possibilities frontier is bowed in toward the origin.
B) labor is the only factor of production.
C) the country with the largest amount of labor will have a comparative advantage in labor-intensive products.
D) the country's comparative advantage depends on its relative endowment of the various factors of production.
E) capital is the only factor of production.
Correct Answer:

Verified
Correct Answer:
Verified
Q4: International trade improves the welfare of trading
Q5: Suppose that Ecuador is a labor-abundant country
Q6: Which of the following industries would be
Q7: GDP per capita is positively correlated with
Q8: Countries engaging in international trade would tend
Q10: If the production of widgets is inherently
Q11: Countries would tend to export products that
Q12: In the factor-proportions theory, international trade tends
Q13: Countries tend to have a comparative disadvantage
Q14: The factor-proportions theory of international trade predicts