Homework (Ch 03) Suppose there exist two imaginary countries, Everglades and Denali. Their labor forces are each capable of supplying four million hours per week that can be used to produce shorts, almonds, or some combination of the two. The following table shows the amount of shorts or almonds that can be produced by one hour of labor. Shorts Almonds Country (Pairs per hour of labor) (Pounds per hour of labor) Everglades 16 Denali 10 Suppose that initially Denali uses 1 million hours of labor per week to produce shorts and 3 million hours per week to produce almonds, while Everglades uses 3 million hours of labor per week to produce shorts and 1 million hours per week to produce almonds. As a result, Everglades produces 12 million pairs of shorts and 16 million pounds of almonds, and Denali produces 5 million pairs of shorts and 30 million pounds of almonds. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the amount of shorts and almonds it produces. Everglades's opportunity cost of producing 1 pair of shorts is of almonds, and Denali's opportunity cost of producing 1 pair of shorts is of almonds. Therefore, has a comparative advantage in the production of shorts, and has a comparative advantage in the production of almonds. 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 shorts will produce million pairs per week, and the country that produces almonds will produce million pounds 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 shorts trades 13 million pairs of shorts to the other country in exchange for 39 million pounds of almonds. 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