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Question 11 1 pts Assume a two-country, two-good, and two-input model where the following relationships hold: (K/L) U > (K/L)R (K/L)cars > (K/L)shirts (K/L)u is
Question 11 1 pts Assume a two-country, two-good, and two-input model where the following relationships hold: (K/L) U > (K/L)R (K/L)cars > (K/L)shirts (K/L)u is the capital-labor ratio in Country U, (K/L)R is the capital-labor ratio in Country R, (K/L)cars indicates the capital-labor ratio in the production of cars, and (K/L)shirts indicates the capital-labor ratio in the production of shirts. Assume further that technology and tastes are the same in the Country U and Country R. Which of the following statements is true? O Production of cars is relatively capital-intensive O Production of shirts is relatively capital-intensive. O Production of shirts is relatively cheaper in Country U than in Country R. O The laborers in the Country U are less productive than the laborers in Country R
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