(Table: Data on Suburbia) Use this table, which represents autarkic and free-trade production and consumption and resource use for Suburbia, to answer the following question. What is the ratio of total capital to total labor in Suburbia?
A) 1 unit/day
B) 1.5 units/day
C) 1.67 units/day
D) 3 units/day

Question

(Table: Data on Suburbia) Use this table, which represents autarkic and free-trade production and consumption and resource use for Suburbia, to answer the following question.  What is the ratio of total capital to total labor in Suburbia?
A) 1 unit/day 
B) 1.5 units/day 
C) 1.67 units/day 
D) 3 units/day

Quizplus · Accepted Answer

To find the ratio of total capital to total labor in Suburbia, we need to sum up the total amount of capital and divide it by the total amount of labor. 
Total capital = (Autarky capital production) + (Free-trade capital production) - (Autarky capital consumption) - (Free-trade capital consumption) 
= (2+2-1-1)+(3+5-2-5) 
= 1+1 = 2 
Total labor = (Autarky labor production) + (Free-trade labor production) - (Autarky labor consumption) - (Free-trade labor consumption) 
= (10+20-7-13)+(10+12-7-11) 
= 10+4 = 14 
Therefore, ratio of total capital to total labor = Total capital / Total labor = 2 / 14 = 1.67 units/day.

(Table: Data on Suburbia) Use This Table, Which Represents Autarkic