Suppose there exist two imaginary countries,Everglades and Yosemite. Their labor forces are eachcapable of supplying four million hours per day that canbe used to produce shorts, almonds, or somecombination of the two. The following table shows theamount of shorts or almonds that can be produced byone hour of labor. Suppose that initially Yosemite uses 1million hours of labor per day to produce shorts and 3million hours per day to produce almonds, whileEverglades uses 3 million hours of labor per day toproduce shorts and 1 million hours per day to producealmonds. As a result, Everglades produces 15 millionpairs of shorts and 20 million pounds of almonds, andYosemite produces 8 million pairs of shorts and 48million pounds of almonds. Assume there are no othercountries willing to engage in trade, so, in the absenceof trade between these two countries, each countryconsumes the amount of shorts and almonds itproduces. Everglades's opportunity cost of producing 1pair of shorts is pound grad of almonds, andYosemite's opportunity cost producing 1 pair of shorts is- of almonds. Therefore, has a comparativeadvantage in the production of shorts, and has acomparative advantage in the production of almonds.Suppose that each country completely specializes in theproduction of the good in which it has a comparativeadvantage, producing only that good. In this case, thecountry that produces shorts will produce million pairsper day, and the country that produces almonds willproduce million pounds per day. In the following table,enter each country's production decision on the thirdrow of the table (marked "Production"). Suppose thecountry that produces shorts trades 18 million pairs ofshorts to the other country in exchange for 54 millionpounds of almonds. In the following table, select theamount of each good that each country exports andimports in the boxes across the row marked "TradeAction," and enter each country's final consumption ofeach good on the line marked "Consumption." When thetwo countries did not specialize, the total production ofshorts was 23 million pairs per day, and the totalproduction of almonds was 68 million pounds per day.Because of specialization, the total production of shortshas increased by, million pairs per day, and the totalproduction of almonds has increased by million poundsper day. Because the two countries produce moreshorts and more almonds under specialization, eachcountry is able to gain from trade. Calculate the gainsfrom trade- that is, the amount by which each countryhas increased its consumption of each good relative tothe first row of the table. In the following table, enterthis difference in the boxes across the last row (marked"Increase in Consumption"). underline answer Suppose there exist two imaginary countries, Everglades and Yosemite. Their labor forces are each capable of supplying four million hours per day thatcan be used to produce shorts, almonds, or some combination of the two. The following table shows the amount of shorts or almonds that can beproduced by one hour of labor.CountryEvergladesYosemiteShorts(Pairs per hour of labor)Almonds(Pounds per hour of labor)2016Suppose that initially Yosemite uses 1 million hours of labor per day to produce shorts and 3 million hours per day to produce almonds, whileEverglades uses 3 million hours of labor per day to produce shorts and 1 million hours per day to produce almonds. As a result, Everglades produces15 million pairs of shorts and 20 million pounds of almonds, and Yosemite produces 8 million pairs of shorts and 48 million pounds of almonds.Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes theamount of shorts and almonds it produces.Everglades's opportunity cost of producing 1 pair of shorts is 1/2 pound of almonds, and Yosemite's opportunity cost of producing 1 pair ofshorts is 1/4 pound of almonds. Therefore,.has a comparative advantage in the production of shorts, anda comparative advantage in the production of almonds.hasSuppose 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 shorts will producemillion pairs per day, and the country that produces almonds will producemillion pounds per day.In the following table, enter each country's production decision on the third row of the table (marked "Production").Suppose the country that produces shorts trades 18 million pairs of shorts to the other country in exchange for 54 million pounds of almonds.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 shorts was 23 million pairs per day, and the total production of almonds was 68million pounds per day. Because of specialization, the total production of shorts has increased by million pairs per day, and the totalproduction of almonds has increased bymillion pounds per day.Because the two countries produce more shorts and more almonds 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").EvergladesYosemiteShortsAlmondsShortsAlmonds(Millions of pairs) (Millions of pounds)(Millions of pairs) (Millions of pounds)Without TradeProductionConsumptionWith TradeProductionTrade actionConsumptionGains from TradeIncrease in Consumption15152204848

Question

Suppose there exist two imaginary countries,Everglades and Yosemite. Their labor forces are eachcapable of supplying four million hours per day that canbe used to produce shorts, almonds, or somecombination of the two. The following table shows theamount of shorts or almonds that can be produced byone hour of labor. Suppose that initially Yosemite uses 1million hours of labor per day to produce shorts and 3million hours per day to produce almonds, whileEverglades uses 3 million hours of labor per day toproduce shorts and 1 million hours per day to producealmonds. As a result, Everglades produces 15 millionpairs of shorts and 20 million pounds of almonds, andYosemite produces 8 million pairs of shorts and 48million pounds of almonds. Assume there are no othercountries willing to engage in trade, so, in the absenceof trade between these two countries, each countryconsumes the amount of shorts and almonds itproduces. Everglades's opportunity cost of producing 1pair of shorts is pound grad of almonds, andYosemite's opportunity cost producing 1 pair of shorts is- of almonds. Therefore, has a comparativeadvantage in the production of shorts, and has acomparative advantage in the production of almonds.Suppose that each country completely specializes in theproduction of the good in which it has a comparativeadvantage, producing only that good. In this case, thecountry that produces shorts will produce million pairsper day, and the country that produces almonds willproduce million pounds per day. In the following table,enter each country's production decision on the thirdrow of the table (marked &#34;Production&#34;). Suppose thecountry that produces shorts trades 18 million pairs ofshorts to the other country in exchange for 54 millionpounds of almonds. In the following table, select theamount of each good that each country exports andimports in the boxes across the row marked &#34;TradeAction,&#34; and enter each country's final consumption ofeach good on the line marked &#34;Consumption.&#34; When thetwo countries did not specialize, the total production ofshorts was 23 million pairs per day, and the totalproduction of almonds was 68 million pounds per day.Because of specialization, the total production of shortshas increased by, million pairs per day, and the totalproduction of almonds has increased by million poundsper day. Because the two countries produce moreshorts and more almonds under specialization, eachcountry is able to gain from trade. Calculate the gainsfrom trade- that is, the amount by which each countryhas increased its consumption of each good relative tothe first row of the table. In the following table, enterthis difference in the boxes across the last row (marked&#34;Increase in Consumption&#34;). underline answer Suppose there exist two imaginary countries, Everglades and Yosemite. Their labor forces are each capable of supplying four million hours per day thatcan be used to produce shorts, almonds, or some combination of the two. The following table shows the amount of shorts or almonds that can beproduced by one hour of labor.CountryEvergladesYosemiteShorts(Pairs per hour of labor)Almonds(Pounds per hour of labor)2016Suppose that initially Yosemite uses 1 million hours of labor per day to produce shorts and 3 million hours per day to produce almonds, whileEverglades uses 3 million hours of labor per day to produce shorts and 1 million hours per day to produce almonds. As a result, Everglades produces15 million pairs of shorts and 20 million pounds of almonds, and Yosemite produces 8 million pairs of shorts and 48 million pounds of almonds.Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes theamount of shorts and almonds it produces.Everglades's opportunity cost of producing 1 pair of shorts is 1/2 pound of almonds, and Yosemite's opportunity cost of producing 1 pair ofshorts is 1/4 pound of almonds. Therefore,.has a comparative advantage in the production of shorts, anda comparative advantage in the production of almonds.hasSuppose 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 shorts will producemillion pairs per day, and the country that produces almonds will producemillion pounds per day.In the following table, enter each country's production decision on the third row of the table (marked &#34;Production&#34;).Suppose the country that produces shorts trades 18 million pairs of shorts to the other country in exchange for 54 million pounds of almonds.In the following table, select the amount of each good that each country exports and imports in the boxes across the row marked &#34;Trade Action,&#34; andenter each country's final consumption of each good on the line marked &#34;Consumption.&#34;When the two countries did not specialize, the total production of shorts was 23 million pairs per day, and the total production of almonds was 68million pounds per day. Because of specialization, the total production of shorts has increased by million pairs per day, and the totalproduction of almonds has increased bymillion pounds per day.Because the two countries produce more shorts and more almonds 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 &#34;Increase in Consumption&#34;).EvergladesYosemiteShortsAlmondsShortsAlmonds(Millions of pairs) (Millions of pounds)(Millions of pairs) (Millions of pounds)Without TradeProductionConsumptionWith TradeProductionTrade actionConsumptionGains from TradeIncrease in Consumption15152204848

Accepted Answer

Comparative advantage implies the ability of the nation to produce the goods at an opportunity cost…