Use the following table to answer the question below. Jake's Production Possibilities Schedule Pounds of Green Beans Pounds of Corn 160 120 80 40 0 0 10 20 30 40 Jane's Production Possibilities Schedule Pounds of Green Beans Pounds of Corn 80 60 40 20 0 0 20 40 60 80 Without trade Jake consumes 20 pounds of green beans and 80 pounds of corn, and Jane consumes 40 pounds of green beans and 40 pounds of corn. If the terms of trade are 1 pound of green beans for 3 pounds of corn, and Jake sells Jane 72 pounds of corn, then the gains from trade for Jane are pounds of green beans and pounds of corn with trade and specialization.
Use the following table to answer the question below. Jake's Production Possibilities Schedule Pounds of Green Beans Pounds of Corn 160 120 80 40 0 0 10 20 30 40 Jane's Production Possibilities Schedule Pounds of Green Beans Pounds of Corn 80 60 40 20 0 0 20 40 60 80 Without trade Jake consumes 20 pounds of green beans and 80 pounds of corn, and Jane consumes 40 pounds of green beans and 40 pounds of corn. If the terms of trade are 1 pound of green beans for 3 pounds of corn, and Jake sells Jane 72 pounds of corn, then the gains from trade for Jane are pounds of green beans and pounds of corn with trade and specialization.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:### Production Possibilities and Gains from Trade
#### Use the following table to answer the question below.
| **Jake's Production Possibilities Schedule** | | | **Jane's Production Possibilities Schedule** |
|----------------------------------------------|----|----|--------------------------------------------|
| Pounds of Green Beans | Pounds of Corn | | Pounds of Green Beans | Pounds of Corn |
| 0 | 160 | | 0 | 80 |
| 10 | 120 | | 20 | 60 |
| 20 | 80 | | 40 | 40 |
| 30 | 40 | | 60 | 20 |
| 40 | 0 | | 80 | 0 |
Without trade, Jake consumes 20 pounds of green beans and 80 pounds of corn, and Jane consumes 40 pounds of green beans and 40 pounds of corn. If the terms of trade are 1 pound of green beans for 3 pounds of corn, and Jake sells Jane 72 pounds of corn, then the gains from trade for Jane are _______ pounds of green beans and _______ pounds of corn with trade and specialization.
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