Unformatted text preview: d) Never Intersects ii) Analysis: Comparing happiness with and without trade-Comparing Autarky Equilibrium to Trade Equilibrium-Principle of Comparative Advantage *1 Q: Consumption Production-Conclusion: Why Trade? -Beneficial Who to trade with? -Country who we have CA with What to trade? -Good we have CA in What should terms of trade be? -(Px/Py) A < (Px/Py) tt < (Px/Py) B...
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- Summer '08
- Economics, I. Ricardian Model, Trade Equilibrium -Principle, Consumption Production -Conclusion