02 May Question: The answer choices for the drop down boxes from left to right are: ( imports or exports 14), (imp…
ng cengage.com MINDTAP Search this course Maddie From Cene Homework (Ch 03) Consider two neighboring island countries called Arcadia and Euphoria. They each have 4 million labor hours available per week that they can use to produce 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. Country Arcadita Euphoria Jeans (Pairs per hour of labor) 12 16 (Bushels per hour of labor) Initially, suppose Arcadia uses 1 million hours of labor per week to produce rye and 3 million hours per week to produce jeans, while Euphoria uses 3 million hours of labor per week to produce rye and 1 million hours per week to produce jeans. Consequently, Arcadia produces 6 million bushels of rye and 36 million pairs of jeans, and Euphoria produces 12 million bushels of rye and 16 million pairs of jeans. 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 rye and jeans it produces. of jeans, and Euphoria’s opportunity cost of producing 1 bushel of rye is has a comparative Arcadia’s opportunity cost of producing 1 bushel of rye is of jeans. Therefore, has a comparative advantage in the production of rye, and advantage in the production of jeans. Suppose that each country completely specalizes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces rye will produce million bushels per week, and the country that produces jeans will produce million pairs per week. A-z In the folowing table, enter each country’s producrion decision on the third row of the tabie (marked “Production”) Suppose the country that produces rye trades 14 million bushels of rye to the other country in exchange for 42 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,” 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 rye was 18 million bushels per week, and the total production of jeans was 52 million
ng cengage.com MINDTAP Search this course Maddie From Cene Homework (Ch 03) Suppose the country that produces rye trades 14 million bushels of rye to the other country in exchange for 42 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,” 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 rye was 18 million bushels per week, and the total production of jeans was 52 million pairs per week. Because of specialization, the total production of rye has increased by jeans has increased by million bushels per week, and the total production of 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 consurmption 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 (manked “Increase in Consumption”). Arcadia Euphoria Rye (Millions of bushels) Jeans Rye (Millions of bushels) eans (Millions of pairs) (Millions of pairs) Without Trade Production 36 12 16 Consumption 36 12 16 With Trade Production Trade action Consumption A-z Gains from Trade Grade It Now Save & Continue Continue without saving
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.