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1) Which of the following is not an example of a capital rich nation? A. Canada B. Germany C. India D. Italy 2) Assume that

1) Which of the following is not an example of a capital rich nation?

A.

Canada

B.

Germany

C.

India

D.

Italy

2)

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:

A.

capital

B.

land

C.

both capital and land

D.

neither capital nor land

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