1. The United States and Canada have two factors of production, capital and labor, with which they produce two goods, TV's and Wheat. Technology is the same in the two countries. TV's are Capital-intensive; and the US is capital-abundant. Analyze the effects on the terms of trade and on the two countries' welfare of the following: a) Capital stock increase in the US. (2 pts) b) Labor supply increase in the US. (2 pts) c) Capital stock increase in Canada. (2 pts) d) Labor supply increase in Canada. (2 pts)