Consider two neighboring island countries called Bellissima and Dolorium. They each have 4 million labor hours available per week that they can use to produce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor. Tables & chart attached Country Jeans Corn
(Pairs per hour of labor) (Bushels per hour of labor)
Bellissima 5 10
Dolorium 4 16

Bellissima Dolorium
Jeans Corn Jeans Corn

Without Trade
Production 5 30 12 16
Consumption 5 30 12 16
With Trade
Production
Imports/Exports
Consumption
Gains from Trade
Increase in Consumption

Suppose the country that produces jeans trades 13 million pairs of jeans to the other country in exchange for 39 million bushels of corn.
In the previous table, use the dropdown menus across the row labeled “Imports/Exports” to select the amount of each good that each country imports and exports. Then enter each country’s final consumption of each good on the line labeled “Consumption.”
When the two countries did not specialize, the total production of jeans was 17 million pairs per week, and the total production of corn was 46 million bushels per week. Because of specialization, the total production of jeans has increased by
million pairs per week, and the total production of corn has increased by
million bushels per week.
Because the two countries produce more jeans and more corn 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 the previous table. Enter this difference in the boxes across the last row (labeled “Increase in Consumption”).