This preview shows page 1. Sign up to view the full content.
Unformatted text preview: amount of items they receive o To show how much more you subtract the original production to consumption after trade Yes, but We see that countries as a whole can gain from trade if each exports the goods in which it has a comparative advantage. But, who within the country benefits from trade? Who does trade harm? o We will apply the tools of welfare economics to see where these gains come from and who benefits from them. o Beer companies are closed so those workers are mad o Individual groups-some benefit some lose but there is an overall benefit o The hat industry gained in Chile and cheaper in Argentina to buy A Few More thoughts about the PPF (production possibilities frontier)...
View Full Document
This note was uploaded on 11/16/2011 for the course ECON 1011 taught by Professor Irenefoster during the Fall '11 term at GWU.
- Fall '11