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China Has 1,000 Units of Capital and 3,000 Workers

Question 155

Multiple Choice

China has 1,000 units of capital and 3,000 workers. The United States has 3,000 units of capital and 1,000 workers. Clothing production is labor intensive and chemical production is capital intensive. Suppose that the United States eliminates all restrictions on immigration and Chinese workers are free to emigrate from China to the United States. How many Chinese workers must emigrate from China to the United States in order for factor price equalization to occur?


A) 1,000
B) 2,000
C) 3,000
D) 4,000

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