The following table represents autarkic and free-trade production and consumption and resource use for Suburbia. 
I. Is Surburbia a labor-abundant or a capital-abundant country? Explain your answer.
II. What is the price of good X in autarky? With free trade?
III. How many units of what product are exported? How many units of what product are imported?
IV. Has the marginal product of labor in good X production increased or decreased?
Explain your answer.
V. Has the marginal product of capital in good Y production increased or decreased?
Explain your answer.
Correct Answer:
Verified
Q117: France and Italy only trade with each
Q118: France and Italy only trade with each
Q119: Chile and the United States use capital
Q120: In the long run, when factors are
Q121: Who is likely to lose if the
Q123: I. Is the United States a net
Q124: (Table: Factor Use in Latvian Trade)
Q125: Suppose that the following table gives annual
Q126: (Figure: A Country's Before and After Trade
Q127: If India has a comparative advantage in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents