Multiple Choice
Country Y has 15 thousand acres of land and 45 thousand laborers, whereas the Rest of the World has 100 thousand acres of land and 200 thousand laborers. These countries produce a labor-intensive good A, and a land-intensive good B. Based on the information given here, we can conclude that:
A) country Y is relatively labor-abundant.
B) country Y enjoys absolute advantage in the production of good B.
C) the Rest of the World is relatively labor-abundant.
D) the factor proportions are the same in both country Y and the rest of the world.
Correct Answer:

Verified
Correct Answer:
Verified
Q32: The production-possibility curve alone does not provide
Q33: In the figure given below AB is
Q34: "In the two-good, two-country model with increasing
Q35: Explain why the Heckscher-Ohlin model predicts only
Q36: Consider a two-country two-good model where labor
Q38: After the North American Free Trade Agreement
Q39: Assume a two-country two-good two-input model where
Q40: The community indifference curves illustrate the technological
Q41: Increasing-cost production-possibility curves are bowed out from
Q42: In the figure given below AB is