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coum FACTOR ENDDWMENTS Capital {it} 50 Machines Labor {L} 150 Workers 10 Workers INDmTRY FACTOR ENDDWMENTS 1 Loaf of Bread 1 Ton of Steel lCapital

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coum FACTOR ENDDWMENTS Capital {it} 50 Machines Labor {L} 150 Workers 10 Workers INDmTRY FACTOR ENDDWMENTS 1 Loaf of Bread 1 Ton of Steel lCapital Input 20 Machines 1. A. Which country is capital abundant? Labor abundant? B. Which industry is capital intensive? Labor intensive? 2. What is one assumption of the H-0 model? 3. A. Suppose our country only produces two types of goods, Robots and Pizza. Some of our resources our people are better at making robots and are pretty slow when asked to cook pizza, though they can do it if given enough time. Others are superior at cooking pizza, but really struggle when it comes to ma king robots. Still others are ok at each task, but not as good as the specialists. If everyone makes robots, we can produce 10,000 cases of robots. If everyone cooks pizza, we get 5,000 pizzas. Draw the initial PPF. 4. What is a reason, other than trade, for a growing wage gap

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