Consider a framework with two countries, two goods, and two input factors (labour and capital),
The table shows the share of effective labour and share of GDP for these two countries.
| | Share of world effective labour | Share of world GDP |
| Country A | 60% | 70% |
| Country B | 40% | 30% |
Which one of the following is correct?
? Country B exports the labour-intensive good at the trade equilibrium
? Country B has better technology
? Country A is labour abundant.
? Country A has a larger population