Country Y has 15 thousand acres of land and 45 thousand laborers, whereas the Rest of the World has 100 thousand acres of land and 200 thousand laborers. These countries produce a labor-intensive good A, and a land-intensive good B. Based on the information given here, we can conclude that:

Question

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Country Y has a higher ratio of labor to land (3:1) compared to the Rest of the World (2:1), indicating that it is relatively labor-abundant. This also suggests that country Y would have a comparative advantage in producing the labor-intensive good A. No information is given regarding which country enjoys absolute advantage in the production of good B, and we cannot determine if the factor proportions are the same in both countries.

Country Y Has 15 Thousand Acres of Land and 45