Trading helps us reach levels of consumption that were previously unattainable. Team work makes the dream work!

Concept #1: Comparative Advantage and Trade

Practice: If Joe and Carla plan to specialize and trade, what should Joe produce? 


Practice: If Joe and Carla plan to specialize and trade, what should Carla produce? 


Practice: Assume that Joe and Carla will trade Scrambled Eggs and Fresh Squeezed Orange Juice at a rate of 1.2 Eggs for 1 OJ. If Joe’s consumption after trade includes six eggs, what will be Carla’s consumption after trade?