Suppose there exist two imoginaty countries, Congaree and Glacier. Thelr lator forces are each capable of supplying four milson hours per week that can be used to produce shorts, almonds, or some combination of the two. The following table shows the amount of shorts or aimonds that can be preduced by one hour of laber. 5vapose that initially Glacker uses 1 million twours of tabor per week to produce shorts and 3 milion hours per week to produce almonds, while Congaree uses 3 mililon bours of labor per week to produce shorts and 1 millon hours per week to produce aimonds. As a result, Congaree produces 15 mition pairs of shorts and 20 million pounds of almonds, and Glacier produces 8 million pairs of shorts and 48 mition pounds of almonds. Assame theee are no other countries wiliing to engage in trade, so, in the obsence of trade between these two countries, each country consumes the ameunt of shorts and aimonds it perduces. Congaree's opportunity cost af producing 1 pair ot sherts is of almonds, and Giscier's epportunity cost of producing 1 ptir of shors is of almends. Therefore, thas a comparative edvantoge in the production of shorts, and has a comparative advantage in the productian of almonds. Suppose thet cach country cpmpletely speciolizes in the production of the gobd in which it has a comparative advantage. producing only that good. fn this cace, the corintry that prodoces shorts will produce million gounds per week. In the foliowing tabie, enter each country's production decision ant the thind row ar the tabie (marked "Production"). Suppote the country that produces thorts tedes 18 million pairs of shorts to the other country in exchange for 54 milion pounds of almondt. In the following table, select the amount of each good that each country exports and imports in the boxes across the row marked "Trode Action," and. enter each country's final consumption of each good on the line marked "Consumption." When the two countries did not speclalize, the total production of shorts was 23 milion pairs per woek, and the total production of airronds was g8. mililan paunds per week. Because of specialization, the total production of shorts has increased by production of almonds has increased by million pounds per week. Because the two countries produce more shoets and more aimonds under specialzation, each ceuntry is able to gain from trade. Caiculate the gains from trade - that is, the amount by which each country has incressed its constumption af each good relative to the first row af the tabie, In the following table, enter this difference in the boxes across the last row (marked "increase in Consumption?). .

1. Suppose there exist two imoginaty countries, Congaree and Glacier. Thelr lator forces are each
capable of supplying four milson hours per week that can be used to produce shorts, almonds, or
some combination of the two. The following table shows the amount of shorts or aimonds that
can be preduced by one hour of laber. 5vapose that initially Glacker uses 1 million twours of
tabor per week to produce shorts and 3 milion hours per week to produce almonds, while
Congaree uses 3 mililon bours of labor per week to produce shorts and 1 millon hours per week
to produce aimonds. As a result, Congaree produces 15 mition pairs of shorts and 20 million
pounds of almonds, and Glacier produces 8 million pairs of shorts and 48 mition pounds of
almonds. Assame theee are no other countries wiliing to engage in trade, so, in the obsence of
trade between these two countries, each country consumes the ameunt of shorts and aimonds it
perduces. Congaree's opportunity cost af producing 1 pair ot sherts is of almonds, and Giscier's
epportunity cost of producing 1 ptir of shors is of almends. Therefore, thas a comparative
edvantoge in the production of shorts, and has a comparative advantage in the productian of
almonds. Suppose thet cach country cpmpletely speciolizes in the production of the gobd in
which it has a comparative advantage. producing only that good. fn this cace, the corintry that
prodoces shorts will produce million gounds per week. In the foliowing tabie, enter each
country's production decision ant the thind row ar the tabie (marked "Production"). Suppote the
country that produces thorts tedes 18 million pairs of shorts to the other country in exchange for
54 milion pounds of almondt. In the following table, select the amount of each good that each
country exports and imports in the boxes across the row marked "Trode Action," and. enter each
country's final consumption of each good on the line marked "Consumption." When the two
countries did not speclalize, the total production of shorts was 23 milion pairs per woek, and the
total production of airronds was g8. mililan paunds per week. Because of specialization, the total
production of shorts has increased by production of almonds has increased by million pounds per
week. Because the two countries produce more shoets and more aimonds under specialzation,
each ceuntry is able to gain from trade. Caiculate the gains from trade - that is, the amount by
which each country has incressed its constumption af each good relative to the first row af the
tabie, In the following table, enter this difference in the boxes across the last row (marked
"increase in Consumption?).