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There are two countries on a continent, Dothrakia and Braavos. The only products these countries produce are boots and shirts. Consider only two factors of
There are two countries on a continent, Dothrakia and Braavos. The only products these countries produce are boots and shirts. Consider only two factors of production: labor and capital. Compared to boots, shirts are capital intensive (they require looms to make the cloth, whereas boots are made from leather that can be dried in the sun). Dothrakia is a primitive, rural society where only a few families have a loom. Braavos is an advanced, urban society with many factories and the continent's only bank. The two countries have similar size populations
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