Consider two neighboring island countries called Dolorium and Bellissima. They each have 4 million labor hours available

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Consider two neighboring island countries called Dolorium andBellissima. They each have 4 million labor hours available per weekthat they can use to produce jeans, rye, or a combination of both.The following table shows the amount of jeans or rye that can beproduced using 1 hour of labor.
Country
Jeans
Rye
(Pairs per hour of labor)
(Bushels per hour of labor)
Initially, suppose Bellissima uses 1 million hours of labor perweek to produce jeans and 3 million hours per week to produce rye,while Dolorium uses 3 million hours of labor per week to producejeans and 1 million hours per week to produce rye. Consequently,Dolorium produces 12 million pairs of jeans and 16 million bushelsof rye, and Bellissima produces 6 million pairs of jeans and 36million bushels of rye. Assume there are no other countries willingto trade goods, so, in the absence of trade between these twocountries, each country consumes the amount of jeans and rye itproduces.
Dolorium's opportunity cost of producing 1 pair of jeansis (1/2 bushel, 1/4bushel, 2 bushels, 4 bushels) of rye,and Bellissima's opportunity cost of producing 1 pair of jeansis (1/2 bushel, 1/4bushel, 2 bushels, 4 bushels) of rye.Therefore, (Bellissima or Dolorium) has a comparativeadvantage in the production of jeans, and (Bellissima orDolorium) has a comparative advantage in the production of rye.
Suppose that each country completely specializes in theproduction of the good in which it has a comparative advantage,producing only that good. In this case, the country thatproduces jeans will produce _____ million pairs per week, andthe country that produces rye will produce ______million bushels per week.
In the following table, enter each country's production decisionon the third row of the table (marked “Production”).
Suppose the country that produces jeans trades 14 million pairsof jeans to the other country in exchange for 42 million bushels ofrye.
In the following table, select the amount of each good that eachcountry exports and imports in the boxes across the row marked“Trade Action,” and enter each country's final consumption of eachgood on the line marked “Consumption.”
When the two countries did not specialize, the total productionof jeans was 18 million pairs per week, and the total production ofrye was 52 million bushels per week. Because of specialization, thetotal production of jeans has increased by _____ million pairsper week, and the total production of rye has increased by _____million bushels per week.
Because the two countries produce more jeans and more rye underspecialization, each country is able to gain from trade.
Calculate the gains from trade—that is, the amount by which eachcountry has increased its consumption of each good relative to thefirst row of the table. In the following table, enter thisdifference in the boxes across the last row (marked “Increase inConsumption”).
Dolorium
Bellissima
Jeans
Rye
Jeans
Rye
(Millions of pairs)
(Millions of bushels)
(Millions of pairs)
(Millions of bushels)