The country A has an endowment (total supply) of 160 units of labor and 14 units of land, whereas country B has 40 units of labor and 6 units of land. Is country B labor or land abundant? If wheat is land-intensive and cloth is labor-intensive, what is the Heckscher-Ohlin prediction for the pattern of trade between country A and country B?

The country A has an endowment (total supply) of 160 units of labor and 14 units of land, whereas country B has 40 units of labor and 6 units of land. Is country B labor or land abundant? If wheat is land-intensive and cloth is labor-intensive, what is the Heckscher-Ohlin prediction for the pattern of trade between country A and country B?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.6P

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