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3. The following table contains information for the hypothetical country, United Chicago, a country known to be highly labor abundant. It might be said that
3. The following table contains information for the hypothetical country, United Chicago, a country known to be highly labor abundant. It might be said that the data conflicts with the factorproportions theory. Why is that? (hint: compare capital-intensity between imports and exports). Give one possible explanation to resolve this paradox. (10 pts.) Factor Content of United Chicago Exports and Imports 2023 Imports Exports Capital per Billion Dollars S2,700,000,000 $2,600,000,000 Labor (Person Years) per Billion S 1200 800 Capital/La bor Ratio (SS/Worker) $2,250,000 $3,250,000 Average Years of Education/Worker 12.1 10.9 Proportion of Engineers and Scientists in Workforce 2.30% 1.90%
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