Problem
(PPP) Richland and Poor land each have two industries: traded TVs and non traded house maintenance. The world price of TVs is R$100 (R$ = Richland dollar). Assume for now that the exchange rate is R$1 = 1 PP (PP = Poor land peso) and that prices are flexible. It takes 1 day for a worker in each country to visit and maintain 1 house. It takes 1 day for a Richland worker to make a TV, and 4 days for a Poor land worker.
a. What is the Richland wage in R$ per day? What is the Poor land wage in PP per day? In R$ per day? What is the ratio of Poor land to Richland wages in a common currency?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.