Contente Euphoria Rye Jeans Rye Jeans (Millions of bushels) (Millions of pairs) (Millions of bushels) (Millions of pairs) Without Trade Production 48 15 20 Consumption 8. 48 15 20 With Trade Production Imports/Exports Consumption Gains from Trade Increase in Consumption Suppose the country that produces rye trades 18 million bushels of rye to the other country in exchange for 54 million pairs of jeans. In the previous table, use the dropdown menus across the row labeled "Imports/Exports" to select the amount of each good that each country and exports. Then enter each country's final consumption of each good on the line labeled "Consumption." When the two countries did not specialize, the total production of rye was 23 million bushels per week, and the total production of jeans was 6 million pairs per week. Because of specialization, the total production of rye has increased by million bushels per week, and the total production of jeans has increased by [ ]million 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 previous table. Enter this difference in the boxes across the last row (labeled "Increase in Consumption").
Contente Euphoria Rye Jeans Rye Jeans (Millions of bushels) (Millions of pairs) (Millions of bushels) (Millions of pairs) Without Trade Production 48 15 20 Consumption 8. 48 15 20 With Trade Production Imports/Exports Consumption Gains from Trade Increase in Consumption Suppose the country that produces rye trades 18 million bushels of rye to the other country in exchange for 54 million pairs of jeans. In the previous table, use the dropdown menus across the row labeled "Imports/Exports" to select the amount of each good that each country and exports. Then enter each country's final consumption of each good on the line labeled "Consumption." When the two countries did not specialize, the total production of rye was 23 million bushels per week, and the total production of jeans was 6 million pairs per week. Because of specialization, the total production of rye has increased by million bushels per week, and the total production of jeans has increased by [ ]million 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 previous table. Enter this difference in the boxes across the last row (labeled "Increase in Consumption").
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text:In the following table, enter each country's production decision on the third row of the table (labeled "Production").
Contente
Euphoria
Rye
Jeans
Rye
Jeans
(Millions of bushels) (Millions of pairs) (Millions of bushels) (Millions of pairs)
Without Trade
Production
48
15
20
Consumption
8
48
15
20
With Trade
Production
Imports/Exports
Consumption
Gains from Trade
Increase in Consumption
Suppose the country that produces rye trades 18 million bushels of rye to the other country in exchange for 54 million pairs of jeans.
In the previous table, use the dropdown menus across the row labeled "Imports/Exports" to select the amount of each good that each country imports
and exports. Then enter each country's final consumption of each good on the line labeled "Consumption."
When the two countries did not specialize, the total production of rye was 23 million bushels per week, and the total production of jeans was 68
million pairs per week. Because of specialization, the total production of rye has increased by
million bushels per week, and the total
production of jeans has increased by
million 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 the
previous table. Enter this difference in the boxes across the last row (labeled "Increase in Consumption").
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