In regards to Susan's response, I would tell her that her answer needs to factor more than the cost of labor within China. The additional information that needs to be calculated in as a variable would have to some how include not only the cost of labor, but the supply itself in the first place, as well to support the claim. Additionally we would have to take into account the efficacy of the labor, the supply and demand as well as understanding if there are grounds previously established for something like this (Mankiw,2021). Also, something that also stood out to me after re reading the question is that all resources can be scarce even if they are in abundance. The additional factors that would have to be accounted for also could be related to productivity levels, being able to allocate sources, as well as the opportunity cost that comes in tow with the production. Even with comparative advantage to see that the opportunity cost is being able to use less. In turn Susan's claim doesn't have enough information to be determined in the long run (Mankiw,2021). If you were in her position, how would you have worded your answer differently?

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In light of the additional factors highlighted I would have worded the answer to emphasize the need ... View the full answer