The following input-requirements data are for Country A, a capital-abundant country that produces nothing but bread and wine using only capital and labor as inputs. Based on this information, which of the following statements is true? 1 Pound of Bread1 Gallon of WineCapital Input5 units2 unitsLabor Input4 units1 unit
A. The inputs are used in the same proportion in the production of both the goods.
B. Wine is a relatively capital-intensive good.
C. Bread is a relatively capital-intensive good.
D. In the absence of trade, the wage rate is lower than the rental rate of capital in this country.
Answer: B
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