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Consider a Hypothetical Economy in Which Only Computers and Shoes

Question 118

Multiple Choice

Consider a hypothetical economy in which only computers and shoes are produced and in which computer production is capital intensive and shoe production is labor intensive. If two resources are being used, labor and capital, then the capital-labor ratio would be:


A) higher in the shoe industry.
B) lower in the computer industry.
C) the same in both industries.
D) higher in the computer industry.

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