Question: Please provide explanation also for the questions below. Ques. Consider the following data on factor endowments of two countries, A & B. Countries Factor Endowments

Please provide explanation also for the questions below.

Ques. Consider the following data on factor endowments of two countries, A & B.

Countries

Factor Endowments AB

Labor force (in millions of workers)4520

Capital stock (in thousands of machines)1510

Wage(W) $10/hr$5

Rental price (R)$4$6

a.Which country is relatively capital abundant according to the factor quantity abundance?

b.Which country is relatively labor abundant according to the factor quantity abundance??

c.Which country is relatively capital abundant according to the factor price abundance?

d.Which country is relatively labor abundant according to the factor price abundance?

e.Suppose 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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