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 36 million pounds per day, and the total production of chinos was 104 36 million pounds per day, and the total million pairs per day. Because of specialization, the total production of pistachios has increased by production of chinos has increased by 48 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 Denali Pistachios (Millions of pounds) 12 12 Chinos (Millions of pairs) 72 72 Congaree Pistachios (Millions of pounds) 24 24 Chinos (Millions of pairs) 32 32

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter33: International Trade

Section: Chapter Questions

Problem 11QP

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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 36 million pounds per day, and the total production of chinos was 104
36 million pounds per day, and the total
million pairs per day. Because of specialization, the total production of pistachios has increased by
production of chinos has increased by 48 million pairs per day.
Because the two countries produce more pistachios and more chinos under specialization, each country is able to gain from trade.
Ca
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
Pistachios
(Millions of pounds)
12
Denali
12
Chinos
(Millions of pairs)
72
72
Pistachios
(Millions of pounds)
24
Congaree
24
Chinos
(Millions of pairs)
32
32

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