Which country is relatively abundant in capital

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Reference no: EM13825956

Problem-

Consider the following table of factor endowments:

Countries

Factor Endowments U.S. Canada

Labor force (in millions of workers) 100 25

Capital stock (in thousands of machines) 30 15

a.) Which country is relatively abundant in capital?

b.) Which country is relatively abundant in labor?

c.) Suppose that Zambonis are labor intensive and field goal posts are capital intensive. Which country will have comparative advantage in, and thus export, field goal posts? Explain.

Additional Information-

The problem is relates to Economics and it is discuss about abundance factor endowments in the countries of US and Canada. The capital stock and labor force of these two countries are considered for a work which requires a combination of labor intensive and capital intensive.

Reference no: EM13825956

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