Question
Consider the following data on the factor endowments of two countries, A and B. Please show work: Country A has: 18 Labor and 6 Capital
Consider the following data on the factor endowments of two countries, A and B. Please show work:
Country A has: 18 Labor and 6 Capital Stock. Country B has: 120 Labor and 30 Capital Stock.
- Which country is relatively capital abundant?
- Which country is relatively labor abundant?
- Suppose that good C is capital intensive relative to good T.Which country will have comparative advantage in the production of C?How do you know this?
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Price Theory and Applications
Authors: Steven Landsburg
9th edition
1285423526, 978-1285947877, 1285947878, 978-1285423524
