Multiple Choice
Assume that there are two factors, capital and land, and that the U.S. is relatively capital abundant while Chile is relatively land abundant. According to the factor-proportions model:
A) Chilean landowners should support U.S.-Chile free trade.
B) Chilean capitalists should support U.S.-Chile free trade.
C) U.S. capitalists should oppose U.S.-Chile free trade.
D) U.S. capitalists and Chilean capitalists both oppose free trade.
E) There is no support for free trade in either country.
Correct Answer:

Verified
Correct Answer:
Verified
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