Suppose That We Are in a Two-Factor, Two-Country World Where

question 10

Multiple Choice

Suppose that we are in a two-factor, two-country world where the factors of production Are labor (L) and land (T) , the returns to the factors are the wage rate (w) and the rental Rate on land (t) , and the countries are country A and country B. In this situation, country A is land-abundant relative to country B by the physical definition of relative factor Abundance if __________, and country A is land-abundant relative to country B by the Price (or economic) definition if __________.

• A) (L/T)_A < (L/T)_B; (w/t)_A > (w/t)_B
• B) (L/T)_A < (L/T)_B; (w/t)_A < (w/t)_B
• C) (L/T)_A > (L/T)_B; (w/t)_A > (w/t)_B
• D) (L/T)_A > (L/T)_B; (w/t)_A < (w/t)

---

Definitions:

Income

The amount of money received by a person or entity within a specified time-frame, typically from work, investments, or business activities.

Infant Mortality

The death of young children under the age of 1. This rate is often used as an indicator of the level of health in a country.

Postneonatal Paralysis

Paralysis affecting infants after the neonatal period, which is the first four weeks of life, potentially resulting from various causes, including infections, trauma, or congenital conditions.

Elderly

Referring to older adults or aging individuals, often considered to be those aged 65 and above, who may face unique health and social challenges.