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

question 18

Multiple Choice

(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. Which of the following statements is true regarding the change in the marginal product of labor as Suburbia moved from autarky to a free-trade situation?

• A) The MPL in good X production rose.
• B) The MPL in good Y production fell.
• C) The MPL in good X and good Y production both rose.
• D) The MPL in good X and good Y production both fell.

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Definitions:

Proximity

The state of being close or near in space, time, or relationship.

Small Business Owner's Product

A product or service that is offered by an entrepreneur owning and running a small-scale business.

Breakeven Point

The level of production or number of sales at which costs equal revenues, resulting in neither profit nor loss.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.