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