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Question: united kingdom brazil capital 40 machines 10 machines labor 200...

Question details
United Kingdom Brazil
Capital 40 Machines 10 Machines
Labor 200 Workers 60 Workers

Suppose that the United Kingdom and Brazil have the factor endowments in the table to the right. Suppose further that the production requirements for a unit of cement are 2 machines and 8 ​workers, and the requirement for a unit of wool is 1 machine and 7 workers.

a. Based on these production​ requirements, the​ capital-intensive good is ______(A)_____ and the​ labor-intensive good is _____(B)_______.

A) wool or cement

B) wool or cement

b. Given the factor endowments to the​ right, it can be predicted that wool will be exported by _____(A)______.

A) Brazil or United Kingdom

According to the​ Heckscher-Ohlin model, a country exports goods that

A. are abundant in its intensive factors.

B. are intensive in its abundant factors.

C. use a lot of its scarce factors.

D. it has an absolute advantage over.

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