Econ 335 PRACTICE CHAPTER 4(H2)

Econ 335 PRACTICE CHAPTER 4(H2) - (b)Suppose Canada’s...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 335 Dr. Seck PRACTICE QUESTIONS ON COMPARATIVE ADVANTAGE AND FACTORS ENDOWMENTS ( Handout 2) 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?
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: (b)Suppose Canada’s endowments of land and capital are 10 capital and 100 land, and the U.S.’s are 50 capital and 100 land. Which good does each country export? (c)How does trade affect the returns to land, labor and capital in the U.S. and in Canada?...
View Full Document

This note was uploaded on 09/01/2008 for the course ECON 335 taught by Professor Seck during the Spring '08 term at CSU Fullerton.

Ask a homework question - tutors are online