Suppose that all gods are made with two factors, labor and capital. The table below shows the total endowments of each factor in the US and Canada. United States Canada Workers Machines According to the Heckscher-Ohlin Theorem, U.S. exports should be goods that 100 20 10 4

Suppose that all gods are made with two factors, labor and capital. The table below shows the total endowments of each factor in the US and Canada. United States Canada Workers Machines According to the Heckscher-Ohlin Theorem, U.S. exports should be goods that 100 20 10 4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose that all gods are made with two factors, labor and capital. The table below shows the total
endowments of each factor in the US and Canada.
United States
Workers
Machines
According to the Heckscher-Ohlin Theorem, U.S. exports should be goods that
100
20
10
4
Intensively use labor input
Use capital and labor in about equal proportions
Intensively use capital input
Canada
Use either labor or capital input, depending on the good

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