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Suppose that there are three factors capital labor and land Suppose that there are three factors:
capital, labor, and land. Bread requires inputs of land and labor, and steel requires capital and
labor. a. Which factors are variable, and which are specific? b. Suppose Canada’s endowments
of land and capital […]
Suppose that before trade takes place the United States is Suppose that before trade takes
place, the United States is at a point on its PPC where it produces 20 loaves of bread and 20
units of steel. Once trade becomes possible, the price of a unit of steel is […]
Suppose that the United States and Canada have the factor Suppose that the United States
and Canada have the factor endowments given in the table in Question 1. Suppose further that
the production requirements for a unit of steel is 2 machines and 8 workers, and the
requirement for a […]
According to the following table which country is relatively more According to the following table,
which country is relatively more labor-abundant? Explain your answer. Which is relatively more
capital-abundant? According to the following table which country is relatively more
Suppose that Germany decides to become self sufficient in bananas and Suppose that
Germany decides to become self-sufficient in bananas and even to export them. In order to
accomplish this, large tax incentives are granted to companies that will invest in banana
production. Soon, the German industry is competitive and […]
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