Suppose that there are three goods (software, shirts, wheat) and three factors (skilled labor, unskilled labor, land). Software is intensive in skilled labor, shirts are intensive in unskilled labor, and wheat is intensive in land. The US is land-abundant and skilled-labor-abundant relative to the rest of the world.

Discuss the effects of moving from autarky to free trade on:

• The outputs of the three goods in the US;
• The distribution of income in the US (which resource(s) experience an increase in income)
• The incentives to get a university education;
• The degree of disparity in the income distribution (the ratio of the incomes of the high income workers to the incomes of the low income workers).