Question: Consider a framework with two countries, two goods, and two input factors (labour and capital), the table shows the share of effective labour and share

Consider a framework with two countries, two goods, and two input factors (labour and capital), the table shows the share of effective labour and share of GDP for these two countries. Share of world effective labour Share of world GDP Country A 55% 70% Country B 45% 30% Which one of the following is correct? Group of answer choices Country B exports the labour-intensive good at the trade equilibrium. Country A has a larger population Country A is labour abundant. Country B has better technology

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!