Question

Assume that Country A is relatively abundant in capital and relatively scarce in land. According to the factor endowment theory, with free trade, the internal distribution of income in Country A will change in favor of:

Answer 1

Answer:k

Answer is Labor.

Step-by-step explanation:

This talks about how countries are likely to be abundant in different type of natural resources.

This factor of endowment are land, capital and labor.

Note that, countries with abundant skilled labor force is more productive compared to those with high number of unskilled labor.