A situation where one commodity is capital intensive in one country and labour intensive in another country is called

Related MCQs

• ____________states that at constant commodity prices, an increase in the quantity of one factor increases the production of the commodity intensive in this factor and reduces the output of the other commodity which is intensive in the constant factor.
• If a commodity is classified as "labor-intensive" at one set of relative factor prices but "capital-intensive" at another set of relative prices, this situation is known as
• ------------theory states that countries which are rich in labour will export labour intensive goods and countries which are rich in capital will export capital intensive goods
• When a commodity is produced with low K/L ratio that commodity is ______ intensive commodity
• If { } > { } when K= capital and L= labour, Pk is price of capital and Pl is price of labour and A and B are countries then
• Countries H and F operate in an H-O world. Each country produces two goods, A and B. Good A is relatively capital intensive and country F is relatively labor abundant. Suppose however, that the production technology is not the same in the two countries. That is, H has a superior technology of production compared to F.
• The amount of commodity a nation is willing to give up to get an additional unit of another commodity and still remain on the same indifference curve is known as
• Country A has 100 units of labor and Country B has 200 units of labor. Both countries produce computers and Web pages. The unit labor requirements are given in the table below: Computers Web pages Country A 50 1 Country B 100 1 Assume free trade exists and that the relative price is such that both countries specialize completely in the industry in which they have a comparative advantage (neither country produces both goods). The supply of computers relative to Web pages will be:
• Country A and Country B produce computers and Web sites. The unit labor requirements are given in the table below: Computers Web pages Country A 50 1 Country B 100 1 At which of the following relative prices (computers in terms of Web sites) will Country B produce both goods under free trade?
• The curve that shows howmuch of its import commodity a nation requires in exchange for various quantities of its export commodity is