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49 views9 pages

Interdependence and The Gains From Trade

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Interdependence and

the Gains from Trade

3
Copyright © 2006 Thomson Learning
Table 1 The Production Opportunities of the Farmer
and Rancher

Copyright © 2004 South-Western

Figure 1 The Production Possibilities Curve

Copyright©2003 Southwestern/Thomson Learning

Figure 1 The Production Possibilities Curve

Copyright©2003 Southwestern/Thomson Learning

Table 2 The Gains from Trade: A Summary

Copyright © 2004 South-Western

Figure 2 How Trade Expands the Set of Consumption
Opportunities

Copyright©2003 Southwestern/Thomson Learning

Figure 2 How Trade Expands the Set of Consumption
Opportunities

Copyright © 2004 South-Western

Table 2 The Gains from Trade: A Summary

Copyright © 2004 South-Western

Table 3 The Opportunity Cost of Meat
and Potatoes

Opportunity cost of:

1 kilogram of 1 kilogram of
meat potatoes

Gardener 4kg of potatoes 0.25kg of meat

Farmer 2 kg of potatoes 0.5kg of meat

Copyright © 2006 Thomson Learning

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