Q. r1 / w1 < r2 / w2 means (Solved)
1. Nation 1 is capital abundant
2. Nation 1 is labor abundant
3. Nation 2 is capital abundant
4. Nation 2 has high wages
- a. Nation 1 is capital abundant
1. Nation 1 is capital abundant
2. Nation 1 is labor abundant
3. Nation 2 is capital abundant
4. Nation 2 has high wages