Assuming that the production technology and domestic demand of China and the U.S. are similar, the capital/labor factor endowment ratio of the United States is 0.5, and that of China is 0.02. Compared with that in China, which of the followings about the U.S. cost of capital relative to the cost of labor is correct?
AIt is higher than that in China.
BIt is lower than that in China.正確答案
CThere is no difference between two countries.
DThese two countries cannot be compared with each other.
答案與詳解
