Question: I know that the correct answer is (b) 3/4 but I cannot figure out how to get to that point. This is the Heckscher-Ohlin Model

I know that the correct answer is (b) 3/4 but I cannot figure out how to get to that point. This is the Heckscher-Ohlin Model for International Trade economics

Instructions For all the following questions, we focus on Home and two industries, 1 and 2, and assume that the ratio of labor to capital used in industry 1 is equal to 10 divided by the relative wage (10 over W/ R), while the ratio of labor to capital used in industry 2 is equal to 2 divided by the relative wage (2 over W/R). This quiz was locked Mar 3 at 11:59pm. Attempt History Attempt Time Score LATEST Attempt 1 18 minutes 2 out of 7 Score for this quiz: 2 out of 7 Submitted Mar 3 at 11:03pm This attempt took 18 minutes. Question 1 0 I 1 Pts Imagine that the total supply of capital is 100 and the total supply of labor is 400, and that the relative price of labor to capital is 1 lie, W/R = 1). What is the share of capital employed in sector 2 so that the relative demand and relative supply of labor are equalized. You Answered Correct

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!

Problem Set 3 Econ 355 - Introduction to International Thule 2022-2023 Winter Term 1 Due 11:59pm iday October 28th 2022 Online submimion on Canvas only 1 'D-ue/ False For each of the following...

1. Question 1 To protect your trade secrets, you must: 0 / 1 point Take reasonable measures to keep them secret Register them Prove that they are distinctive All of the above Two of the above None of...

Q1- done Q2- explain correlation (China, Turkey) Q3- idk how to apply the theory Country N Turkey Turkey China China Country CoSeries NamSeries Cod 1985 1986 1987 1988 1989 1990 TUR Trade (% o...

PSYC 421 ITEM DEVELOPMENT AND Student Name: ANALYSIS WORKSHEET Section: PSYC421- LaTarsha Jones D02 PART 1: Writing Multiple Choice Test Items (Cohen et al., 2013, pg. 252) Develop one multiple...

The project is progressing well, and you have now been asked if there is enough time and budget to provide and distribute a new marketing mailing. This mailing will be focused on a new international...

W. F. Prince is a wholesaler of industrial lighting fixtures with sales of around $190,000,000 per year. The company currently outsources almost all of its manufacturing to Chinese firms and its...

Hello. Can you help with this four question problem? Case PRIVATE EQUITY CASE: MERGER CONSOLIDATION The questions below COMBINE the Ohio & Maryland PT acquisitions as if they are a single c Learning...

Please analyze and contrast the Introduction and Literature Review of the articles below. Paul Krugman by Jason Briggeman30 Paul Krugman (1953-) was raised on Long Island "in a safe middle-class...

Lecture Notes DL MGT 5100 - Distribution Management Spring 2017 1.0. Day one, Monday, Monday, 9 Jan 17 1.1. Reading Assignments: Chapters 1 and 2 1.1.1. I intend to follow the book so as to provide a...

Pet Food Enterprises has had a machine for five years. At the beginning of the sixth year, the machine was not performing as well as expected. First, Pet Food performed regularly scheduled...

What is laddering? How might it be used in trying to understand which fast-food restaurant customers prefer?

After researching the compebtors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: . EJH Enterprises has EPS of $ 1 . 9 0 , EBITDA of $ 3 0 0 million,...

PREDICTIVE ANALYSIS: In order to use these selection tools to improve performance, it helps to understand what factors contribute to it. Organizations may use predictive analytics to find the answers...

7. One or other combination of 16.

1. Discuss the following statements: a) Mastery is not the same as understanding. b) Being bigger than is not the same as being the thing that is bigger. c) The difference between order and disorder...

5. It is the needs of the individual that are important.