A situation in which one nation produces good A using labor more intensively (relative to capital) than good B and a second nation, producing good A, uses capital more intensively (relative to labor) than good B is called:

A. a reversal of factor intensities.
B. a paradox of factor intensities
C. backward technology.
D. micro intensity.

Ans: A. a reversal of factor intensities.

Economics

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In the food and kindred products industry, it is estimated that the elasticity of output with respect to labor is 0.43 and the elasticity of output with respect to capital is 0.48

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Economics