Suppose that we are in a two-factor, two-country world where the factors of production are labor (L) and land (T), the returns to the factors are the wage rate (w) and the rental rate on land (t), and the countries are country A and country B. In this situation, country A is land-abundant relative to country B by the physical definition of relative factor abundance if ____, and country A is land-abundant relative to country B by the price (or economic) definition if _____. MY CHOICES ARE:
(L/T)A < (L/T)B; (w/t)A > (w/t)B
(L/T)A < (L/T)B; (w/t)A < (w/t)B
(L/T)A > (L/T)B; (w/t)A > (w/t)B
(L/T)A > (L/T)B; (w/t)A < (w/t)B