Factor Endowments and Allocation of Factors of Production


Consider the following table of factor endowments:   

Factor Endowments                                                                    U.S.    Canada
Labor force (in millions of workers)                                         100            25
Capital stock (in thousands of machines)                               30            15

a.) Which country is relatively abundant in capital?
b.) Which country is relatively abundant in labor?
c.) Suppose that Zambonis are labor intensive and field goal posts are capital intensive. Which country will have comparative advantage in, and thus export, field goal posts?  Explain.


The question belongs to Economics and it is about abundance factor endowments in the countries of US and Canada. The labor force and capital stock of these two countries are considered for a work which requires a combination of labor intensive and capital intensive.

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