Given the following diagram that shows the relationship between the price of good X relative to the price of good Y (P_X/P_Y) and the wage rate relative to the return to capital or rental rate on capital (w/r) , and also indicates relative factor prices in country A [(w/r) _A], relative factor prices in country B [(w/r) _B], relative autarky goods prices in country A [(P_X/P_Y) _A], relative autarky goods prices in country B [(P_X/P_Y) _B], and (w/r) [where the (P_X/P_Y) associated with (w/r) is the highest (P_X/P_Y) on the graph]:

At (w/r) values less than (w/r) , __________ is the relatively labor-intensive good and, at (w/r) values greater than (w/r) , __________ the relatively labor-intensive good.

Question

Given the following diagram that shows the relationship between the price of good X relative to the price of good Y (P_X/P_Y) and the wage rate relative to the return to capital or rental rate on capital (w/r) , and also indicates relative factor prices in country A [(w/r) _A], relative factor prices in country B [(w/r) _B], relative autarky goods prices in country A [(P_X/P_Y) _A], relative autarky goods prices in country B [(P_X/P_Y) _B], and (w/r) [where the (P_X/P_Y) associated with (w/r) is the highest (P_X/P_Y) on the graph]:

Given the following diagram that shows the relationship between the price of good X relative to the price of good Y (P<sub>X</sub>/P<sub>Y</sub>) and the wage rate relative to the return to capital or rental rate on capital (w/r) , and also indicates relative factor prices in country A [(w/r) <sub>A</sub>], relative factor prices in country B [(w/r) <sub>B</sub>], relative autarky goods prices in country A [(P<sub>X</sub>/P<sub>Y</sub>) <sub>A</sub>], relative autarky goods prices in country B [(P<sub>X</sub>/P<sub>Y</sub>) <sub>B</sub>], and (w/r) [where the (P<sub>X</sub>/P<sub>Y</sub>) associated with (w/r) is the highest (P<sub>X</sub>/P<sub>Y</sub>) on the graph]: At (w/r) values less than (w/r) , __________ is the relatively labor-intensive good and, at (w/r) values greater than (w/r) , __________ the relatively labor-intensive good. A) good X; good Y is B) good X; good X also is C) good Y; good Y also is D) good Y; good X is

At (w/r) values less than (w/r) , __________ is the relatively labor-intensive good and, at (w/r) values greater than (w/r) , __________ the relatively labor-intensive good.

Quizplus · Accepted Answer

The Answer of Given the following diagram that shows the relationship between the price of good X relative to the price of good Y (P_X/P_Y) and the wage rate relative to the return to capital or rental rate on capital (w/r), and also indicates relative factor prices in country A [(w/r)_A], relative factor prices in country B [(w/r)_B], relative autarky goods prices in country A [(P_X/P_Y)_A], relative autarky goods prices in country B [(P_X/P_Y)_B], and (w/r) [where the (P_X/P_Y) associated with (w/r) is the highest (P_X/P_Y) on the graph]: At (w/r) values less than (w/r), __________ is the relatively labor-intensive good and, at (w/r) values greater than (w/r), __________ the relatively labor-intensive good. A) good X; good Y is B) good X; good X also is C) good Y; good Y also is D) good Y; good X is

Given the Following Diagram That Shows the Relationship Between the Price