6) The trade model of the "factor endowment theory" maintains that a. Comparative advantage determines the distribution of the gains from trade b. Absolute advantage determines the distribution of the gains from trade A country exports goods for which its resource endowments are most suited d. The division of labor is limited by the size of the world market C.
6) The trade model of the "factor endowment theory" maintains that a. Comparative advantage determines the distribution of the gains from trade b. Absolute advantage determines the distribution of the gains from trade A country exports goods for which its resource endowments are most suited d. The division of labor is limited by the size of the world market C.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter3: Interdependence And The Gains From Trade
Section: Chapter Questions
Problem 4CQQ
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![6) The trade model of the "factor endowment theory" maintains that
a. Comparative advantage determines the distribution of the gains from trade
b. Absolute advantage determines the distribution of the gains from trade
A country exports goods for which its resource endowments are most suited
C.
d. The division of labor is limited by the size of the world market](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3a2f01f1-e9a5-47a3-862e-fb67ad5a9305%2Fa4efb4e0-e87e-42f2-b902-22d2531423a0%2Fie5ehi_processed.png&w=3840&q=75)
Transcribed Image Text:6) The trade model of the "factor endowment theory" maintains that
a. Comparative advantage determines the distribution of the gains from trade
b. Absolute advantage determines the distribution of the gains from trade
A country exports goods for which its resource endowments are most suited
C.
d. The division of labor is limited by the size of the world market
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