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Country Y Has 15 Thousand Acres of Land and 45

Question 37

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.

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