1. C HAPTER 3 SPECIFIC FACTORS AND INCOME DISTRIBUTION

2. Figure 3-1 The Production Function for Manufactures

3. Figure 3-2 The Marginal Product of Labor

4. Figure 3-3 The Production Possibility Frontier in the Specific Factors Model

5. Figure 3-4 The Allocation of Labor

6. Figure 3-5 Production in the Spcific Factors Model

7. Figure 3-6 An Equal Proportional Increase in the Prices of Manufactures and Food

8. Figure 3-7 A Rise in the Price of Manufactures

9. Figure 3-8 The Response of Output to a Change in the Relative Price of Manufactures

10. Figure 3-9 Determination of Relative Prices

11. Figure 3-10 Changing the Capital Stock

12. Figure 3-11 Trade and Relative Prices

13. Figure 3-12 The Budget Consraint for a Trading Economy

14. Figure 3-13 Trading Equilibrium continued...

15. Figure 3-13 continued...

16. Figure 3-14 Trade Expands the Economy’s Consumption Possibilities

17. Figure 3A-1 Showing that Output is Equal to the Area nder the Marginal Product Curve

18. Figure 3A-2 The Distribution of Income Within the Manufacturing Sector

19. Figure 3A-3 A Rise in P M Benefits the Owners of Capital

20. Figure 3A-4 A Rise in P M Hurts Landowners