Answer the questions in Exercise 3 using the following data on factor endowments of countries C and

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Answer the questions in Exercise 3 using the following data on factor endowments of countries C and D:

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data from exercise3

Consider the following data on the factor endowments of two countries, A and B:

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a. Which country is relatively capital-abundant?

b. Which country is relatively labor-abundant?

c. Suppose that good S is capital intensive relative to good T. Which country will have a comparative advantage in the production of S? Explain.

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International Economics

ISBN: 9780321783868

9th Edition

Authors: Steven Husted , Michael Melvin

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Question Posted: Apr 27, 2024 03:00 AM

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Answer the questions in Exercise 3 using the following data on factor endowments of countries C and

Question:

Countries Factor Endowments C D Labor force (in millions of workers) 6 20 Capital stock (in thousands of machines) 24 40

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International Economics

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