Please answer the questions below

Class Exercise Wage and Exchange Rates ECON485W5850 1. Suppose now we have a money economy instead of a barter economy I A wage rate for each country, stated in that country's currency (e. g., in U.S., $3 per hour; in UK, 1 per hour.) I An exchange rate that relates the countries' currencies (e. g., $1 = 0.5) Cloth (Y) Wage! Labor! Price! Labor! Price! hr unit unit US. (A) $3 3 UK (B) 1 4 a. Fill in the table above with Price!unit where price is converted into US$. Based on the common price (in $) of products, which country should export wheat, which country should export cloth? Explain b. What if the US. wage rate rose to $6? Redo part a in the table below and explain. Assume the UK wage rate is the same and exchange rate is unchanged at $1 = 0.5. Wheat (X) Cloth (Y) Wage! Labor! Price! Labor! Price! hr unit umt unit unit US. (A) $6 3 UK (B) 1 4 c. What if instead the US. wage rate fell to $2.67? Redo part a in the table below and explain. Assume the UK wage rate is the same, exchange rate is unchanged at $1 = 0.5. Cloth (Y) Wage! Labor! Price! Labor! Price! unit unit U.S.(A) $2.67 U.K (B) 1 d. Back from part a, instead of US wage changed, the exchange rate changed to $1 = If: while US, UK wages remain unchanged. What will happen in the international trade? Fill in the table below with new exchange rate and explain. Wheat (X) Cloth (Y) Wage! Labor! Price! Labor! Price! hr unit unit unit unit US. (A) $3 2 3 UK (B) 1 6 4 e. What is the exchange rate changed to $1 = 0.44415 while US, UK wages remain unchanged. What will happen in the international trade? Fill in the table below with new exchange rate and explain. Wheat (X) Cloth (Y) Wage! Labor! Price! Labor! Price! hr unit unit unit unit US. (A) $3 U.K (B) 1 In Conclusion: 1. Country A should export good j when: angg