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{"ops":[{"insert":"You are given the following Classical-type table showing the number of days of labor input required to obtain 1 unit of output of each of the five commodities in each of the two countries:"},{"attributes":{"list":"ordered"},"insert":"\n"},{"insert":"\n"},{"attributes":{"italic":true},"insert":"\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Bread\u00a0\u00a0VCR\u2019s\u00a0\u00a0Lamps\u00a0\u00a0\u00a0\u00a0rugs\u00a0\u00a0books"},{"insert":"\n"},{"attributes":{"italic":true},"insert":"\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0------------------------------------------------------"},{"insert":"\n"},{"attributes":{"italic":true},"insert":"United Kingdom\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02 days\u00a0\u00a08 days\u00a0\u00a04 days\u00a0\u00a0\u00a0\u00a03 days\u00a0\u00a02 days"},{"insert":"\n"},{"attributes":{"italic":true},"insert":"United States\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02 days\u00a0\u00a06 days\u00a0\u00a0\u00a02 days\u00a0\u00a0\u00a0\u00a02 days\u00a03 days "},{"insert":"\n"},{"attributes":{"italic":true},"insert":"\u00a0"},{"insert":"\n"},{"attributes":{"italic":true},"insert":"\u00a0(a) "},{"insert":"Assume that the wage rate in the United Kingdom (W"},{"attributes":{"script":"sub"},"insert":"uk"},{"insert":" ) is \u00a38\/day, the wage rate in the United States(W"},{"attributes":{"script":"sub"},"insert":"us"},{"insert":") is $20\/day, and the exchange rate (e) is "},{"attributes":{"italic":true},"insert":"$2\/\u00a3 1."},{"insert":" With this information, determine the goods that will be U. K. exports and the goods that will be U.S. exports.\n"},{"attributes":{"italic":true},"insert":"(b) "},{"insert":"Keeping W"},{"attributes":{"script":"sub"},"insert":"us"},{"insert":" at $20\/day and keeping the exchange rate $2\/\u00a3 1. Calculate the upper and lower limits (in pounds per day) to the U.K. wage rate that are consistent with two-way trade between the countries.\n"},{"attributes":{"italic":true},"insert":"(c) "},{"insert":"With W"},{"attributes":{"script":"sub"},"insert":"uk"},{"insert":" at \u00a38\/day and W"},{"attributes":{"script":"sub"},"insert":"us"},{"insert":" at "},{"attributes":{"italic":true},"insert":"$20\/day, "},{"insert":"calculate the upper and lower limits (in $\/\u00a3) to the exchange rate that are consistent with two-way trade between the countries\n"}]}

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