Multiple Choice
Hong Kong is relatively abundant in labor, while Canada is relatively abundant in capital.In both countries, the production of shirts is relatively more labor intensive than the production of computers.According to the factor-endowment theory, Hong Kong will have a(n)
A) absolute advantage in the production of shirts.
B) absolute advantage in the production of computers.
C) comparative advantage in the production of shirts.
D) comparative advantage in the production of computers.
Correct Answer:
Verified
Correct Answer:
Verified
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