3/25/22, 10:56 PMAssignment Print View7.The graphs below show the production possibilities frontiers for grapes and lemons in Spain and Argentina, with their current levels of production marked aspoints A and B. Spain and Argentina are trading partners, where the terms of trade are 1 million tons of grapes = 0.2 million tons of lemons or 1 million tonsof lemons = 5 million tons of grapes. Each year, 4 million tons of grapes are exported.Spain's Production Possibilities14131211109.87A4210.40.81.21.62.0Lemons (millions of tons)Argentina's Production Possibilities6.05.55.04.54.03.53.02.52.01.51.00.50.40.81.21.6 2.02.42.8Lemons (millions of tons)Using this information, complete the table below (all values are in millions of tons).https://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=7.&postSubmissionView=13252718198728708&wid=D13252718466068729&rol...1/2Grapes (millions of tons)Grapes (millions of tons)ㅇ 50B. 3/25/22, 10:56 PMAssignment Print ViewInstructions: Round your answers to one decimal place.Gains from Trade in Spain and ArgentinaGains from TradeSpainArgentinaBefore trade (current level of production)grapes andlemonsgrapes andlemonsComplete specializationgrapes andlemonsgrapes andlemonsGoods tradedExport:grapes VExport:lemons VAfter tradegrapes andlemonsgrapes andlemonsGainsgrapes andlemonsgrapes andlemonsReferencesNumeric ResponseDifficulty: 3 HardLearning Objective: Evaluate the gains from trade by illustratingthem in a production possibilities model and by calculating themnumerically.https://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=7.&postSubmissionView=13252718198728708&wid=13252718466068729&rol...2/2

Given; Term of trade:- 1 million tons of grapes= 0.2 million tons of lemon 1 million tons of lemon=…

7. The graphs below show the production possibilities frontiers for grapes and lemons in Spain and Argentina, with their current levels of production marked as points A and B. Spain and Argentina are trading partners, where the terms of trade are 1 million tons of grapes = 0.2 million tons of lemons or 1 million tons of lemons = 5 million tons of grapes. Each year, 4 million tons of grapes are exported. Spain's Production Possibilities 14 13 12 11 10 8 7 6 4 3 2 1 0.4 0.8 1.2 1.6 2.0 Lemons (millions of tons) Argentina's Production Possibilities 6.0 5.5 5.0 4.5 4.0 3.5 B 3.0 2.5 2.0 1.5 1.0 0.5 0.4 0.8 1.2 1.6 2.0 2.4 2.8 Lemons (millions of tons) Grapes (millions of tons) Grapes (millions of tons)

7. The graphs below show the production possibilities frontiers for grapes and lemons in Spain and Argentina, with their current levels of production marked as points A and B. Spain and Argentina are trading partners, where the terms of trade are 1 million tons of grapes = 0.2 million tons of lemons or 1 million tons of lemons = 5 million tons of grapes. Each year, 4 million tons of grapes are exported. Spain's Production Possibilities 14 13 12 11 10 8 7 6 4 3 2 1 0.4 0.8 1.2 1.6 2.0 Lemons (millions of tons) Argentina's Production Possibilities 6.0 5.5 5.0 4.5 4.0 3.5 B 3.0 2.5 2.0 1.5 1.0 0.5 0.4 0.8 1.2 1.6 2.0 2.4 2.8 Lemons (millions of tons) Grapes (millions of tons) Grapes (millions of tons)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 5CQQ

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