Consider the following data on the factor endowments of two countries, A and B: a. Which country

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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 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 25, 2024 01:00 AM

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Consider the following data on the factor endowments of two countries, A and B: a. Which country

Question:

Factor Endowments Labor force (millions of workers) Capital stock (thousands of machines) Countries A B 36 18 12 9

Step by Step Answer:

International Economics

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