The first two drop bar options are ( 1/2 pair, 1/4 pair, 2 pairs, 4 pairs)The third and fourth drop bar options are (euphoria or contente) For the chart Trade action drop bar 1 is (exports 26 or imports 26) Drop bar 2 is (exports 78 or imports 78) drop bar 3 is ( exports 26 or imports 26) drop bar 5 is (exports 78 or imports 78)Thank you for your patience and hardwork!! AttemptsKeep the Highest/ 43. Gains from tradeConsider two neighboring island countries called Contente and Euphoria. They each have 4 million labor hours available per week that they can use toproduce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor.RyeJeansCountry(Bushels per hour of labor)(Pairs per hour of labor)Contente1224Euphoria32Initially, suppose Contente uses 1 million hours of labor per week to produce rye and 3 million hours per week to produce jeans, while Euphoria uses 3million hours of labor per week to produce rye and 1 million hours per week to produce jeans. Consequently, Contente produces 12 million bushels ofrye and 72 million pairs of jeans, and Euphoria produces 24 million bushels of rye and 32 million pairs of jeans. Assume there are no other countrieswilling to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of rye and jeans it produces.Contente's opportunity cost of producing 1 bushel of rye isof jeans, and Euphoria's opportunity cost of producing 1 bushel of rye isv of jeans. Therefore,v has a comparative advantage in the production of rye, andhas a comparativeadvantage in the production of jeans.Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. Inthis case, the country that produces rye will producemillion bushels per week, and the country that produces jeans will producemillion pairs per week.In the following table, enter each country's production decision on the third row of the table (marked "Production").Suppose the country that produces rye trades 26 million bushels of rye to the other country in exchange for 78 million pairs of jeans.In the following table, select the amount of each good that each country exports and imports in the boxes across the row marked "Trade Action," andenter each country's final consumption of each good on the line marked "Consumption." Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. Inthis case, the country that produces rye will producemillion bushels per week, and the country that produces jeans will producemillion pairs per week.In the following table, enter each country's production decision on the third row of the table (marked "Production").Suppose the country that produces rye trades 26 million bushels of rye to the other country in exchange for 78 million pairs of jeans.In the following table, select the amount of each good that each country exports and imports in the boxes across the row marked "Trade Action," andenter each country's final consumption of each good on the line marked "Consumption."When the two countries did not specialize, the total production of rye was 36 million bushels per week, and the total production of jeans was 104million pairs per week. Because of specialization, the total production of rye has increased bymillion bushels per week, and the totalproduction of jeans has increased bymillion pairs per week.Because the two countries produce more rye and more jeans under specialization, each country is able to gain from trade.Calculate the gains from trade-that is, the amount by which each country has increased its consumption of each good relative to the first row of thetable. In the following table, enter this difference in the boxes across the last row (marked "Increase in Consumption").ContenteEuphoriaRyeJeansRyeJeans(Millions of bushels) (Millions of pairs) (Millions of bushels)(Millions of pairs)Without TradeProduction12722432Consumption12722432With TradeProductionTrade actionConsumptionGains from TradeIncrease in Consumption

Question

The first two drop bar options are ( 1/2 pair, 1/4 pair, 2 pairs, 4 pairs)The third and fourth drop bar options are (euphoria or contente) For the chart Trade action drop bar 1 is (exports 26 or imports 26) Drop bar 2 is (exports 78 or imports 78) drop bar 3 is ( exports 26 or imports 26) drop bar 5 is (exports 78 or imports 78)Thank you for your patience and hardwork!! AttemptsKeep the Highest/ 43. Gains from tradeConsider two neighboring island countries called Contente and Euphoria. They each have 4 million labor hours available per week that they can use toproduce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor.RyeJeansCountry(Bushels per hour of labor)(Pairs per hour of labor)Contente1224Euphoria32Initially, suppose Contente uses 1 million hours of labor per week to produce rye and 3 million hours per week to produce jeans, while Euphoria uses 3million hours of labor per week to produce rye and 1 million hours per week to produce jeans. Consequently, Contente produces 12 million bushels ofrye and 72 million pairs of jeans, and Euphoria produces 24 million bushels of rye and 32 million pairs of jeans. Assume there are no other countrieswilling to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of rye and jeans it produces.Contente's opportunity cost of producing 1 bushel of rye isof jeans, and Euphoria's opportunity cost of producing 1 bushel of rye isv of jeans. Therefore,v has a comparative advantage in the production of rye, andhas a comparativeadvantage in the production of jeans.Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. Inthis case, the country that produces rye will producemillion bushels per week, and the country that produces jeans will producemillion pairs per week.In the following table, enter each country's production decision on the third row of the table (marked &#34;Production&#34;).Suppose the country that produces rye trades 26 million bushels of rye to the other country in exchange for 78 million pairs of jeans.In the following table, select the amount of each good that each country exports and imports in the boxes across the row marked &#34;Trade Action,&#34; andenter each country's final consumption of each good on the line marked &#34;Consumption.&#34; Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. Inthis case, the country that produces rye will producemillion bushels per week, and the country that produces jeans will producemillion pairs per week.In the following table, enter each country's production decision on the third row of the table (marked &#34;Production&#34;).Suppose the country that produces rye trades 26 million bushels of rye to the other country in exchange for 78 million pairs of jeans.In the following table, select the amount of each good that each country exports and imports in the boxes across the row marked &#34;Trade Action,&#34; andenter each country's final consumption of each good on the line marked &#34;Consumption.&#34;When the two countries did not specialize, the total production of rye was 36 million bushels per week, and the total production of jeans was 104million pairs per week. Because of specialization, the total production of rye has increased bymillion bushels per week, and the totalproduction of jeans has increased bymillion pairs per week.Because the two countries produce more rye and more jeans under specialization, each country is able to gain from trade.Calculate the gains from trade-that is, the amount by which each country has increased its consumption of each good relative to the first row of thetable. In the following table, enter this difference in the boxes across the last row (marked &#34;Increase in Consumption&#34;).ContenteEuphoriaRyeJeansRyeJeans(Millions of bushels) (Millions of pairs) (Millions of bushels)(Millions of pairs)Without TradeProduction12722432Consumption12722432With TradeProductionTrade actionConsumptionGains from TradeIncrease in Consumption

Accepted Answer

If a country can produce a good at a lower opportunity cost it is said to have a comparative…