(Table: Factor Use in Trade) In the hypothetical economy
Provided in the table, what is the capitaltolabor ratio for
Exports?
A)$1,849
B)$35,500
C)$18,490
D)$1,920

Question

(Table: Factor Use in Trade) In the hypothetical economy
Provided in the table, what is the capital­to­labor ratio for
Exports?
A)$1,849 
B)$35,500 
C)$18,490 
D)$1,920

Quizplus · Accepted Answer

The capital-to-labor ratio for Exports can be calculated as (Capital Stock/Number of Workers), which is [(Export of Mining*Value of Capital in Mining) + (Export of Manufacturing*Value of Capital in Manufacturing)] / (Number of Workers in Mining + Number of Workers in Manufacturing). Plugging in the values from the table, we get [(50*420)+(100*1180)] / (10+80) = $18,490. Therefore, the answer is C.

(Table: Factor Use in Trade) in the Hypothetical Economy