The bolded wording is the answer choices for the drop-down arrows it has 4 answer choices Euphoria's opportunity cost of producing 1 pair of jeans is a) 1/2 b) 1/4 c) 2 d) 4 of corn, and Arcadia's opportunity cost of producing 1 pair of jeans is a) 1/2 b) 1/4 c) 2 d) 4 of corn.Therefore, a) Euphoria b) Arcadia has a comparative advantage in the production of jeans, and a) Euphoria b) Arcadia and has a comparative advantage in the production of corn. Euphoria Trade Actions (Jeans) a) Exports 14 b) Imports 14Trade Actions (Corn) a) Exports 42 b) Imports 42 ArcadiaTrade Actions (Jeans) a) Exports 14 b) Imports 14Trade Actions (Corn) a) Exports 42 b) Imports 42 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," andenter 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 18 million pairs per month, and the total production of corn was 52 millionbushels per month. Because of specialization, the total production of jeans has increased bymillion pairs per month, and the total productionof corn has increased bymillion bushels per month.Because the two countries produce more jeans and more corn 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 thetable. In the following table, enter this difference in the boxes across the last row (marked "Increase in Consumption").EuphoriaArcadiaJeansCornJeansCorn(Millions of pairs)(Millions of bushels)(Millions of pairs)(Millions of bushels)Without TradeProduction121636Consumption1216636With TradeProductionTrade actionConsumptionGains from TradeIncrease in Consumption Consider two neighboring island countries called Euphoria and Arcadia. They each have 4 million labor hours available per month that they can use toproduce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor.JeansCornCountry(Pairs per hour of labor)(Bushels per hour of labor)Euphoria416Arcadia612Initially, suppose Arcadia uses 1 million hours of labor per month to produce jeans and 3 million hours per month to produce corn, while Euphoria uses3 million hours of labor per month to produce jeans and 1 million hours per month to produce corn. Consequently, Euphoria produces 12 million pairsof jeans and 16 million bushels of corn, and Arcadia produces 6 million pairs of jeans and 36 million bushels of corn. Assume there are no othercountries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and corn itproduces.Euphoria's opportunity cost of producing 1 pair of jeans isof corn, and Arcadia's opportunity cost of producing 1 pair of jeans isv of corn. Therefore,has a comparative advantage in the production of jeans, andhas a comparativeadvantage in the production of corn.Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. Inthis case, the country that produces jeans will producemillion pairs per month, and the country that produces corn will producemillion bushels per month.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 14 million pairs of jeans to the other country in exchange for 42 million bushels of corn.

Since you have asked the multi-subparts questions, as per the guideline, we are supposed to solve…

Answered: he bolded wording is the answer choices…

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC