Multiple Choice
The factor-proportions theory of international trade states that:
A) a country should export the good with the highest output per unit of labor.
B) a country will export the good that requires more intensive use of its abundant factor.
C) a country should import the good that uses capital most intensively.
D) a country should export the factor that receives a higher wage in the other country.
E) All of the above
Correct Answer:

Verified
Correct Answer:
Verified
Q41: Trade Adjustment Assistance is common in other
Q42: The factor-proportions theory of international trade implies
Q43: The abundance of a particular factor of
Q44: Discuss how international trade tends to change
Q45: Suppose that Bolivia is labor abundant, and
Q47: The factor-proportions theory predicts that the pattern
Q48: If a country is abundant in labor
Q49: According to factor price equalization, if Country
Q50: International trade tends to:<br>A) have no effect
Q51: A country that is labor abundant relative