Consider two neighboring island countries called Euphoria and Contente. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor. Jeans Rye Country (Pairs per hour of labor) (Bushels per hour of labor) Euphoria 5 20 Contente CO 16 Initially, suppose Contente uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye, while Euphoria uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Euphoria produces 15 million pairs of jeans and 20 million bushels of rye, and Contente produces 8 million pairs of jeans and 48 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces. Euphoria's opportunity cost of producing 1 pair of jeans is of rye, and Contente's opportunity cost of producing 1 pair of jeans is of rye. Therefore, has a comparative advantage in the production of jeans, and has a comparative advantage in the production of rye. Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will produce million pairs per week, and the country that produces rye will produce million bushels 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 jeans trades 18 million pairs of jeans to the other country in exchange for 54 million bushels of rye. 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, " and enter each country's final consumption of each good on the line marked "Consumption." When the two countries did not specialize, the total production of jeans was 23 million pairs per week, and the total production of rye was 68 million bushels per week. Because of specialization, the total production of jeans has increased by | million pairs per week, and the total production of rye has increased by million bushels per week. Because the two countries produce more jeans and more rye under specialization, each country is able to gain from trade.Consider two neighboring island countries called Euphoria and Contente. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor. Jeans Rye Country (Pairs per hour of labor) (Bushels per hour of labor) Euphoria 20 Contente 16 Initially, suppose Contente uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye, while Euphoria uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Euphoria produces 15 million pairs of jeans and 20 million bushels of rye, and Contente produces 8 million pairs of jeans and 48 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces. Euphoria's opportunity cost of producing 1 pair of jeans is of rye, and Contente's opportunity cost of producing 1 pair of jeans is of rye. Therefore, has a advantage in the production of jeans, and has a comparative advantage in the production of rye. 1/2 bushel 1/4 bushel Suppose that each country completely specializes in the p he good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will produce 2 bushels pairs per week, and the country that produces rye will produce million bushels per week. 4 bushels In the following table, enter each country's production decision on the third row of the table (marked "Production"). Suppose the country that produces jeans trades 18 million pairs of jeans to the other country in exchange for 54 million bushels of rye. 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," and enter each country's final consumption of each good on the line marked "Consumption." When the two countries did not specialize, the total production of jeans was 23 million pairs per week, and the total production of rye was 68 million bushels per week. Because of specialization, the total production of jeans has increased by million pairs per week, and the total production of rye has increased by million bushels per week. Because the two countries produce more jeans and more rye under specialization, each country is able to gain from trade.Consider two neighboring island countries called Euphoria and Contente. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor. Jeans Rye Country (Pairs per hour of labor) (Bushels per hour of labor) Euphoria 20 Contente 16 Initially, suppose Contente uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye, while Euphoria uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Euphoria produces 15 million pairs of jeans and 20 million bushels of rye, and Contente produces 8 million pairs of jeans and 48 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces. Euphoria's opportunity cost of producing 1 pair of jeans is of rye, and Contente's opportunity cost of producing 1 pair of jeans is of rye. Therefore, has a comparative advantage in the production of jeans, and has a comparative The production of rye. 1/2 bushel 1/4 bushel each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In country that produces jeans will produce million pairs per week, and the country that produces rye will produce 2 bushels per week. 4 bushels In the following table, enter each country's production decision on the third row of the table (marked "Production"). Suppose the country that produces jeans trades 18 million pairs of jeans to the other country in exchange for 54 million bushels of rye. 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, " and enter each country's final consumption of each good on the line marked "Consumption." When the two countries did not specialize, the total production of jeans was 23 million pairs per week, and the total production of rye was 68 million bushels per week. Because of specialization, the total production of jeans has increased by million pairs per week, and the total production of rye has increased by | million bushels per week. Because the two countries produce more jeans and more rye under specialization, each country is able to gain from trade.Consider two neighboring island countries called Euphoria and Contente. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor. Jeans Rye Country (Pairs per hour of labor) (Bushels per hour of labor) Euphoria 5 20 Contente CO 16 Initially, suppose Contente uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye, while Euphoria uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Euphoria produces 15 million pairs of jeans and 20 million bushels of rye, and Contente produces 8 million pairs of jeans and 48 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces. Euphoria's opportunity cost of producing 1 pair of jeans is of rye, and Contente's opportunity cost of producing 1 pair of jeans is of rye. Therefore, has a comparative advantage in the production of jeans, and has a comparative advantage in the production of rye. Euphoria Suppose that each country complete Contente s in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans win produce million pairs per week, and the country that produces rye will produce million bushels 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 jeans trades 18 million pairs of jeans to the other country in exchange for 54 million bushels of rye. 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, " and enter each country's final consumption of each good on the line marked "Consumption." When the two countries did not specialize, the total production of jeans was 23 million pairs per week, and the total production of rye was 68 million bushels per week. Because of specialization, the total production of jeans has increased by million pairs per week, and the total production of rye has increased by million bushels per week. Because the two countries produce more jeans and more rye under specialization, each country is able to gain from trade.Consider two neighboring island countries called Euphoria and Contente. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor. Jeans Rye Country (Pairs per hour of labor) ( Bushels per hour of labor) Euphoria 20 Contente CO 16 Initially, suppose Contente uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye, while Euphoria uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Euphoria produces 15 million pairs of jeans and 20 million bushels of rye, and Contente produces 8 million pairs of jeans and 48 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces. Euphoria's opportunity cost of producing 1 pair of jeans is of rye, and Contente's opportunity cost of producing 1 pair of jeans is of rye. Therefore, has a comparative advantage in the production of jeans, and has a comparative advantage in the production of rye. Euphoria Suppose that each country completely specializes in the production of the good in which it has a comparative adve Contente Jucing only that good. In this case, the country that produces jeans will produce million pairs per week, and the country that produces rye wi produce million bushels 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 jeans trades 18 million pairs of jeans to the other country in exchange for 54 million bushels of rye. 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, " and enter each country's final consumption of each good on the line marked "Consumption." When the two countries did not specialize, the total production of jeans was 23 million pairs per week, and the total production of rye was 68 million bushels per week. Because of specialization, the total production of jeans has increased by |_ million pairs per week, and the total production of rye has increased by | million bushels per week. Because the two countries produce more jeans and more rye 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 table. In the following table, enter this difference in the boxes across the last row (marked "Increase in Consumption"). Euphoria Contente Jeans Rye Jeans Rye (Millions of pairs) (Millions of bushels) (Millions of pairs) (Millions of bushels) Without Trade Production 15 20 CO 48 Consumption 15 20 CO 48 With Trade Production Trade action Consumption Gains from Trade Increase in Consumption Grade It Now Save & ContinueCalculate 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 table. In the following table, enter this difference in the boxes across the last row (marked "Increase in Consumption"). Euphoria Contente Jeans Rye Jeans Rye (Millions of pairs) (Millions of bushels) (Millions of pairs) (Millions of bushels) Without Trade Production 15 20 8 48 Consumption 15 20 CO 48 With Trade Production Trade action Consumption Exports 18 Gains from Trade Increase in Consumption Imports 18 Grade It Now Save & Continue Continue without savingCalculate 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 table. In the following table, enter this difference in the boxes across the last row (marked "Increase in Consumption"). Euphoria Contente Jeans Rye Jeans Rye (Millions of pairs) (Millions of bushels) (Millions of pairs) (Millions of bushels) Without Trade Production 15 20 8 48 Consumption 15 20 8 48 With Trade Production Trade action Consumption Exports 54 Gains from Trade Increase in Consumption Imports 54 Grade It Now Save & Continue Continue without savingCalculate 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 table. In the following table, enter this difference in the boxes across the last row (marked "Increase in Consumption"). Euphoria Contente Jeans Rye Jeans Rye (Millions of pairs) (Millions of bushels) (Millions of pairs) (Millions of bushels) Without Trade Production 15 20 8 48 Consumption 15 20 8 48 With Trade Production Trade action Consumption Exports 18 Gains from Trade Increase in Consumption Imports 18 Grade It Now Save & Continue Continue without savingCalculate 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 table. In the following table, enter this difference in the boxes across the last row (marked "Increase in Consumption"). Euphoria Contente Jeans Rye Jeans Rye (Millions of pairs) (Millions of bushels) (Millions of pairs) (Millions of bushels) Without Trade Production 15 20 8 48 Consumption 15 20 8 48 With Trade Production Trade action Consumption Exports 54 Gains from Trade Increase in Consumption Imports 54 Grade It Now Save & Continue Continue without saving