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when the two countries did not specialise, the total production of jeans was 23

ID: 1178188 • Letter: W

Question

when the two countries did not specialise, the total production of jeans was 23 million pairs per month and the total production of maize was 68 million kilograms per month. because of specialisation, the total production of jeans has increased by___________A)3million,B)12million,c)6million,d)9million pairs per month, and the total production of maize has increased by________A)24million,B)12million,C)18million,D)16million kilograms per month.because the two countries produce more jeans and more maize under specialisation,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 table enter this differnce in the boxes across the last row(market increase in conumption)

                                                              euphoria                                                                                                      arcadia
                                          jeans                                             maize                                    jeans                                             maize
without trade
prod.and consumption    15                                               20                                                 8                                                  48
with trade
prodution                        ???                                               ???                                            ???                                                 ???
trade                ______a)gets 18,b)give 18   ______a)gets54,B)gives54   _______a)gets18,b)give18 ______a)gets54,B)gives54 consumption                ???                                                   ???                                       ???                                                      ???

gains from trade
increase in  
consumption           ???                                                       ???                                        ???                                                        ???


Explanation / Answer

c)6million         _A)24million