EconH200L3 - Comparative Advantage and Trade What determines which people produce which goods In this simple\"economy there are two goods meat and

EconH200L3 - Comparative Advantage and Trade What...

This preview shows page 1 - 4 out of 9 pages.

Comparative Advantage and Trade What determines which people produce which goods? In this simple “economy” there are two goods, meat and potatoes, and two people who we will call the rancher and the farmer. (I wonder why?) Both people have 8 hours to spend producing potatoes, meat, or a combination of both. The following table shows their production opportunities. Notice that the left half of the table and the right half of the table basically contains the same information.
Image of page 1