{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Principles of Economics- Mankiw (5th) 55

Principles of Economics- Mankiw (5th) 55 - CHAPTER 3...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 3 INTERDEPENDENCE AND THE GAINS FROM TRADE 57 The gains from trade in this example are tremendous. Rather than mowing his own lawn, Woods should make the commercial and hire Forrest to mow the lawn. As long as Woods pays Forrest more than $20 and less than $10,000, both of them are better off. SHOULD THE UNITED STATES TRADE WITH OTHER COUNTRIES? Just as individuals can benefit from specialization and trade with one another, as the farmer and rancher did, so can populations of people in different countries. Many of the goods that Americans enjoy are produced abroad, and many of the goods produced in the United States are sold abroad. Goods produced abroad and sold domestically are called imports. Goods produced domestically and sold abroad are called exports. cause of threat of serious injury.” The ITC did not propose to roll back imports, only to impose a 20% tariff (declining over four years) on imports above last year’s levels. The administration at first appeared
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Ask a homework question - tutors are online