Homework Help is Here – Start Your Trial Now!
Business
Economics
In the following table, enter each country's production decision on the third row of the table (marked "Production"). Suppose the country that produces pistachios trades 18 million pounds of pistachios to the other country in exchange for 54 million pairs of chinos. 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 pistachios was 23 million pounds per day, and the total production of chinos was 68 million pairs per day. Because of specialization, the total production of pistachios has increased by million pounds per day, and the total production of chinos has increased by million pairs per day. Because the two countries produce more pistachios and more chinos 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"). Without Trade Production Consumption With Trade Production Trade action Consumption Gains from Trade Increase in Consumption Yosemite Pistachios (Millions of pounds) 8 8 Chinos (Millions of pairs) 48 48 Sequoia Pistachios (Millions of pounds) 15 15 Chinos (Millions of pairs) 20 20

In the following table, enter each country's production decision on the third row of the table (marked "Production"). Suppose the country that produces pistachios trades 18 million pounds of pistachios to the other country in exchange for 54 million pairs of chinos. 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 pistachios was 23 million pounds per day, and the total production of chinos was 68 million pairs per day. Because of specialization, the total production of pistachios has increased by million pounds per day, and the total production of chinos has increased by million pairs per day. Because the two countries produce more pistachios and more chinos 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"). Without Trade Production Consumption With Trade Production Trade action Consumption Gains from Trade Increase in Consumption Yosemite Pistachios (Millions of pounds) 8 8 Chinos (Millions of pairs) 48 48 Sequoia Pistachios (Millions of pounds) 15 15 Chinos (Millions of pairs) 20 20

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter1: Welcome To Economics!
Section: Chapter Questions
Problem 20CTQ: Suppose you have a team of two workers: one is a baker and one is a chef. Explain why file kitchen...
See similar textbooks
icon
Related questions
Question
In the following table, enter each country's production decision on the third row of the table (marked "Production"). Suppose the country that produces pistachios trades 18 million pounds of pistachios to the other country in exchange for 54 million pairs of chinos. 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 pistachios was 23 million pounds per day, and the total production of chinos was 68 million pairs per day. Because of specialization, the total production of pistachios has increased by million pounds per day, and the total production of chinos has increased by million pairs per day. Because the two countries produce more pistachios and more chinos 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"). Without Trade Produ tion Consumption With Trade Production Trade action Consumption Gains from Trade Increase in Consumption Yosemite Pistachios (Millions of pounds) 8 Chinos (Millions of pairs) 48 48 Sequoia Pistachios (Millions of pounds) 15 15 Chinos (Millions of pairs) 20 20
Transcribed Image Text:In the following table, enter each country's production decision on the third row of the table (marked "Production"). Suppose the country that produces pistachios trades 18 million pounds of pistachios to the other country in exchange for 54 million pairs of chinos. 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 pistachios was 23 million pounds per day, and the total production of chinos was 68 million pairs per day. Because of specialization, the total production of pistachios has increased by million pounds per day, and the total production of chinos has increased by million pairs per day. Because the two countries produce more pistachios and more chinos 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"). Without Trade Produ tion Consumption With Trade Production Trade action Consumption Gains from Trade Increase in Consumption Yosemite Pistachios (Millions of pounds) 8 Chinos (Millions of pairs) 48 48 Sequoia Pistachios (Millions of pounds) 15 15 Chinos (Millions of pairs) 20 20
Suppose there exist two imaginary countries, Yosemite and Sequoia. Their labor forces are each capable of supplying four million hours per day that can be used to produce pistachios, chinos, or some combination of the two. The following table shows the amount of pistachios or chinos that can be produced by one hour of labor. Country Yosemite Sequoia Pistachios (Pounds per hour of labor) 8 LO 5 Chinos (Pairs per hour of labor) 16 20
Transcribed Image Text:Suppose there exist two imaginary countries, Yosemite and Sequoia. Their labor forces are each capable of supplying four million hours per day that can be used to produce pistachios, chinos, or some combination of the two. The following table shows the amount of pistachios or chinos that can be produced by one hour of labor. Country Yosemite Sequoia Pistachios (Pounds per hour of labor) 8 LO 5 Chinos (Pairs per hour of labor) 16 20
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
International Trade
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
SEE MORE TEXTBOOKS