This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: +2SD / -3BM Consume 4SD/3BM 2SD /7 BM New Example Ava 6 Shots BM: 1 shot + Tj SD: 1 shot + OJ BM: SD* SD: BM Julia 10 shots BM: 1 shot + TJ SD: 1/2 shot + OJ BM: 2SD SD: 1/2BM* *Produced and Exported good Terms of trade BM: 1.5 SD 4BM: 6SD Ava Julia Prod. 6BM 20 SD Trade-4BM + 6SD-6SD + 4BM Cons. 6SD/ 2 BM 4BM + 14SD Both benefit from trade Both consume more than they would be able to produce by themselves...
View Full Document
This note was uploaded on 03/05/2012 for the course ECON 101 taught by Professor Balaban during the Fall '07 term at UNC.
- Fall '07