Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose that the United Kingdom and the United States have the factor endowments given in the table below: UK USA Capital 60 computers 10 computers
Suppose that the United Kingdom and the United States have the factor endowments given in the table below:
UK | USA | |
Capital | 60 computers | 10 computers |
Labor | 300 workers | 100 workers |
Suppose further that the production requirements for a unit of manufacturing goods is two machines and eight workers, and the requirement for a unit of agricultural goods is one machine and eight workers.
Which good, manufacturing or agricultural, is relatively intensive in the use of capital? In labor? Show how you know; numerical justification is required. Which country would export agricultural goods? Why?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started