Homework Answers
Solution 2
If the K/L Ratio is Small for Belgium it Means the Capital is Lower and Land is Larger. In such cases Belgium will produce goods which require large areas of Land like Agriculture Manufacturing and Mining Sectors. On the other hand Frnace will produce Capital Intensive goods or services like Telecommunications Sector.
Solution 3
If K/L ratio is higher in france which means it is capital intensive economy and hence shall produce goods which are capital intensive and hence real wages will be commensurately higher in France than in Spain which is more land intensive where wages are minimal.
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