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Economics Consider the following information about the nation Suburbia Autarky Free-Trade Production of good X 100 units 200 units Consumption of good X 100 units
Economics Consider the following information about the nation Suburbia Autarky Free-Trade Production of good X 100 units 200 units Consumption of good X 100 units 100 units Capital used to produce good X 100 units 150 units Labor used to produce good X 100 days 125 days Production of good Y 100 units 50 units Consumption of good Y 100 units 200 units Capital used to produce good Y 150 units 100 units Labor used to produce good Y 50 days 25 days a) Is Suburbia a labor- or a capital-abundant country? Explain your answer. b) What is the price of X in terms of Y with free trade? c) How many units of what product are exported? How many units of what product are imported? d) Has the marginal product of labor in good X production increased or decreased as a result of trade? Explain your answer. e) Has the marginal product of capital in good Y production increased or decreased as a result of trade? Explain your
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