Suppose that all goods are made with two factors-labour and capital. The table below shows the total endowments of each factor in the United States and Canada.Based on the information in the table, which of the following statements is FALSE? A) Canada is relatively capital abundant. B) The US is relatively labour abundant. C) The US has more capital and labour than Canada. D) The US is relatively capital abundant.

Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter17: Economic Growth: Resources, Technology, Ideas And Institutions
Section17.2: A Production Function And Economic Growth
Problem 2ST
icon
Related questions
Question

Suppose that all goods are made with two factors-labour and capital.

The table below shows the total endowments of each factor in the United States and Canada.Based on the information in the table, which of the following statements is FALSE?


A) Canada is relatively capital abundant.
B) The US is relatively labour abundant.
C) The US has more capital and labour than Canada.
D) The US is relatively capital abundant.

 

Endowment of Labour (workers) and Capital (machines)
Canada
10
US
Workers
100
Machines
20
4
Transcribed Image Text:Endowment of Labour (workers) and Capital (machines) Canada 10 US Workers 100 Machines 20 4
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Labor
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Macroeconomics
Macroeconomics
Economics
ISBN:
9781337617390
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co
MACROECONOMICS FOR TODAY
MACROECONOMICS FOR TODAY
Economics
ISBN:
9781337613057
Author:
Tucker
Publisher:
CENGAGE L
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,