A country deciding to export goods that utilize its most abundant production factor reflects which theoretical proposition?

CA Foundation · Business Economics · MTP · May 2026
A country deciding to export goods that utilize its most abundant production factor reflects which theoretical proposition?
(A) A. Absolute Advantage Theory
(B) B. Comparative Cost Theory
(C) C. Factor Proportions Theory
(D) D. Opportunity Cost Theory

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Factor Proportions Theory

Topics: International Trade

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic