2. (8 points) Table 1 gives the factor prices in U.S. and U.K., and Table 2 giv production requirements of commodity X and Y in the two nations. Answert questions. Table 1 Interest rate Wage rate U.S. 8 % $3/hour U.K. 59% $ 20/hour Table 2 U.S. U.K. Capital Labor Capital Labor Commodity X 3 Commodity Y 12 A (2 points) Which nation is capital-abundant? Which nation is labor-abund B. (2 points) In each nation, which commodity is capital-intensive? Which c labor-intensive? C. (2 points) According to the Heckscher-Ohlin theorem, how should each I specialize in production and which country is expected to export commo D. (2 points) According to the Stolper-Samuelson theorem, labor unions in country will be in favor of free trade? Explain briefly (1-2 sentences show sufficient)