If we measure scarcity or abundance correctly, we should use the concept of "effective factor endowment." This means:
a. the actual factor endowment multiplied by the average productivity of workers compared with its share of world GDP .
b. trying to find out how much labor and capital are really involved in producing goods competing with imports and exports.
c. measuring more effectively a nation's actual factor endowment.
d. the actual factor endowment of labor multiplied by the productivity of capital, because, effectively, the productivity of one depends on the quantity of the other.
Ans: a. the actual factor endowment multiplied by the average productivity of workers compared with its share of world GDP .
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