Suppose there exist two imaginary countries, Glacier and Sequoia. Their labor forces are each capable of supplying four million hours per week that can be used to produce chinos, pistachios, or some combination of the two. The following table shows the amount of chinos or pistachios that can be produced by one hour of labor. Country Chinos Pistachios (Pairs per hour of labor) (Pounds per hour of labor) Glacier816 Sequoia520 Suppose that initially Glacier uses 1 million hours of labor per week to produce chinos and 3 million hours per week to produce pistachios, while Sequoia uses 3 million hours of labor per week to produce chinos and 1 million hours per week to produce pistachios. As a result, Glacier produces 8 million pairs of chinos and 48 million pounds of pistachios, and Sequoia produces 15 million pairs of chinos and 20 million pounds of pistachios. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the amount of chinos and pistachios it produces.
