Interdependence and the Gains from Trade 3 Interdependence and the Gains from Trade

Table 1 The Production Opportunities of the Gardner and the Farmer Copyright © 2011 Cengage Learning

Figure 1 The Production Possibilities Frontier (1) Copyright © 2011 Cengage Learning

Figure 1 The Production Possibilities Frontier (2) Copyright © 2011 Cengage Learning

Figure 2 How Trade Expands the Set of Consumption Opportunities (1) Copyright © 2011 Cengage Learning

Figure 2 How Trade Expands the Set of Consumption Opportunities (2) Copyright © 2011 Cengage Learning

Table 2 The Gains from Trade: A Summary Copyright © 2011 Cengage Learning

Table 3 The Opportunity Cost of Meat and Potatoes 1 kilogram of meat 1 kilogram of potatoes Gardener 4 kg of potatoes 0.25 kg of meat Farmer 2 kg of potatoes 0.5kg of meat Copyright © 2011 Cengage Learning