Question
A) According to the following table, which country is relatively more labor-abundant? Explain your answer. Which is relatively more capital-abundant? Germany Italy Capital 40 machines
A) According to the following table, which country is relatively more labor-abundant? Explain your answer. Which is relatively more capital-abundant?
Germany | Italy | |
Capital | 40 machines | 10 machines |
Labor | 200 workers | 60 workers |
B) Do resource endowments change over time? Provide example to illustrate your answer.
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Economics Principles and Policy
Authors: William J. Baumol, Alan S. Blinder
12th edition
978-0538453677, 538453672, 978-0538453622, 538453621, 978-0538453653
