The production of shoes and shirts of one worker in country…

The production of shoes and shirts of one worker in country A and in country B is shown below:   Suppose that before trade (or without trade) each country has 10 workers and they each allocate 5 workers for the production of shoes and 5 workers for the production of shirts. Complete the table below finding the maximum production and consumption of both goods for each country (show your work!):  Maximum consumption and production before trade Country Shoes Shirts A [option1] [option2] B [option3] [option4] If the countries decide to engage in trade (with trade), they will specialize in the production of the good in which they have comparative advantage. To find out this, we calculate the opportunity costs:  Opportunity Costs Country  Shoes  Shirts A [option5] [option6] B [option7] [option8] Based on the opportunity costs, and hence, comparative advantage, Country A will specialize in the production of [option9], whereas country B will specialize in the production of [option10]. Given that each country has 10 workers:  Maximum production with trade Country Shoes Shirts A [option11] [option12] B [option13] [option14] If the countries decide to engage in trade the TERMS-OF-TRADE will be set at 20 shoes for 17 shirts. With this information complete the tables below: Gains from trade for country A Country A Produce Consume  Gains from Trade Shoes [option15] [option16] [option17] Shirts [option18] [option19] [option20]   Gains from Trade for Country B Country B Produce Consume Gains from Trade Shoes [option21] [option22] [option23] Shirts [option24] [option25] [option26]  

This is a file upload question. Write down your solution in…

This is a file upload question. Write down your solution in a piece of paper, take a picture and upload your file. IMPORTANT: typed solutions will not be accepted!    This is the foreign exchange market of euro. Using the information below, answer the following: Draw the supply x demand graph for euro and write down the equilibrium exchange rate (in order to get full credit you must label the graph and curves correctly when drawing your graph). Suppose the supply of euro doubles. Draw the new supply curve (in the graph you drew on part (a) and write down the new equilibrium exchange rate. With this new exchange rate, has the dollar appreciated or depreciated? Justify you answer! With this new exchange rate, what happens to US imports of European goods? Justify your answer!