Econ 333 ch2-3 f09

Econ 333 ch2-3 f09 - Econ 333 Chapters 2-3: Trade,...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 333 Chapters 2-3: Trade, Comparative Advantage, and Production
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Introduction We observe trade any time we drive on a major highway. It would be difficult for any state or province of a country to prosper without “trading” with other parts of the country
Background image of page 2
Trade makes the world better off Some gains from trade are country specific. "Mercantilism.” Related to the feeling that trade with other countries may not improve welfare. The average level of output per worker in a country roughly determines GDP per capita Absolute advantage is not relevant for international gains from trade.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Income is more important than wealth Which would you rather have: a gift of $1 million with the catch that you can never earn any more income, or a job that guarantees you $75,000 per year for life.
Background image of page 4
Comparative Advantage Paul Samuelson once said that comparative advantage is one of few things in economics that is true but not obvious. The validity of any economic theory such as
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/23/2009 for the course ECON 333 taught by Professor Roberts during the Spring '09 term at Ill. Chicago.

Page1 / 13

Econ 333 ch2-3 f09 - Econ 333 Chapters 2-3: Trade,...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online