2. Consider the following information on the production possibilities for two countries, the US. and the U.K.: U.S. U.K. Wheat (bushels/hour) Cloth (yards/hour) i) Determine the opportunity cost of production for each good in each country. ii) Under autarky (i.e., no international trade), what is the relative price of clothing in each country? iii) Suppose the United States exchanges 4W for 4C with the United Kingdom. What good is it exporting? iv) How much does the United States gain in terms of cloth? v) How much does the United Kingdom gain in terms of wheat? vi) What is the possible price range for Pc/Pw (i.e., the relative price of clothing) on the world market for mutually beneficial trade? vii) How much would each nation gain if they exchanged 4W for 6C instead of the original exchange of 4W and 4C? Which country would gain more in comparison to the gains enjoyed in part iv) and v) above? Which country would gain less? viii) Explain why the redistribution of the gains from trade moved in that particular direction. (I.e., why were the gains redistributed in favor of one country and against the other?)