Unformatted text preview: FIGURE 3.2 - This figure shows that as u start to trade, you can start to consume units that were otherwise not possible. ..if you don't have any trade, you stick on the PPC line, but as you throw in a TT line, you can shift off of that PPC and then hit values that otherwise wouldn't be possible. 02.11.08 Remember this always, trade CAN make people better off. ..but it won't always necessarily make people better off. If you are relatively capital rich (the good ol' US of A, or the sissy EU), you're going to specialize in production which is capital intensive, if you have a lot of slave workers, well. ..you're gonna put them to work (labor rich). Factor Abundance vs factor scarcity (peep 02.08.11 A) . 02.13.08 Ok. ...as far as the HO model, the SST theorm is derived from the HO model. ....nuts huh?...
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This note was uploaded on 09/01/2008 for the course ECON 335 taught by Professor Seck during the Spring '08 term at CSU Fullerton.
- Spring '08