Japan Indonesia Capital 10 machines 30 machines Labor 20 workers 50 workers Suppose that Japan and Indonesia have the factor endowments in the preceding table. Suppose further that the production requirements for a laptop computer are 5 machines and 10 workers, and the requirements for a unit of cloth are 2 machines and 5 workers a. Which good, computer or cloth, is relatively capital-intensive? Labor-intensive? Explain your answer. b. Which country would export cloth? Why? Give arguments in favor of your answer.

Japan Indonesia Capital 10 machines 30 machines Labor 20 workers 50 workers Suppose that Japan and Indonesia have the factor endowments in the preceding table. Suppose further that the production requirements for a laptop computer are 5 machines and 10 workers, and the requirements for a unit of cloth are 2 machines and 5 workers a. Which good, computer or cloth, is relatively capital-intensive? Labor-intensive? Explain your answer. b. Which country would export cloth? Why? Give arguments in favor of your answer.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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