Land- and labor-intensive, International Economics

Assignment Help:

Q.. "A good cannot be both land- and labor-intensive." Discuss.

Answer: In a two good or two factor models for instance the original Heckscher-Ohlin framework and the factor intensities are relative intensities. Therefore, the relevant statistic is also workers per acre (or acres per worker) or rental per wage or wage per rental unit. In order to exemplify the logic of the statement above, let us suppose that the production of a broom requires 4 workers and 1 acre. As well, let us suppose that the production of one bushel of wheat requires 40 workers and 80 acres. In this case the acres per person necessary to produce a broom is one quarter, where to produce a bushel of wheat requires 2 acres per person. The wheat is thus (relatively) land intensive furthermore the broom is (relatively) labour intensive.


Related Discussions:- Land- and labor-intensive

Effects of ongoing inflation based on the ppp theory, Q. Discuss th...

Q. Discuss the effects of ongoing inflation based on the PPP theory. Answer: Other things equivalent money supply growth at a constant rate eventually results in ongoi

Describe the crisis in russia starting from 1989, Q. Describe the crisis in...

Q. Describe the crisis in Russia starting from 1989. Explain why? Answer: Must emphasize lack of tax collection, legal system, corruption, organized crime, inflation, seigni

The wage rate, Q. Suppose the relative price of good 1 falls relative to th...

Q. Suppose the relative price of good 1 falls relative to the price of.  What happens to the wage rate? Answer: The labour component of the price of 1 is bigger than that of p

Describe the tools of fiscal policy, Budget: An estimate of all antici...

Budget: An estimate of all anticipated revenue and expenditure of the government for the ensuing financial year is called budget. The budget of the state is a document contain

#title.Economic indicators, I want to make a report on Econmomic indicators...

I want to make a report on Econmomic indicators in financial market

International trade for ideological reasons, Q. Albania refused to engage ...

Q. Albania refused to engage in international trade for ideological reasons. To maximize its economic welfare it could choose to produce at which point in the diagram above? Sup

What is the theory of second best, Q. What is the theory of Second Be...

Q. What is the theory of Second Best? Answer: The principal of the second best notify us that when an economy suffers from multiple distortions the removal of only a few

Asignmnent , construct a production possibilities frontier that represents ...

construct a production possibilities frontier that represents japan''s goal of producing both cars and housing. Assume the japanase economy is in a downtyrn and indicate with an Xt

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd