Lecture Slide for Chapter 3: Interdependence and Gains from Trade (N. Gregory Mankiw's Principles of Economics Textbook)

Principles of Economics, Ninth
Edition
N. Gregory Mankiw




PowerPoint Slides prepared by:
V. Andreea CHIRITESCU
Eastern Illinois University




N. Gregory Mankiw, Principles of Economics, 9th Edition © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in 1
part.

, Chapter 3

Interdependence and the Gains from Trade




N. Gregory Mankiw, Principles of Economics, 9th Edition © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in 2
part.

, A Parable for the Modern Economy
• Only two goods
– Meat
– Potatoes
• Only two people
– A cattle rancher named Ruby
– A potato farmer named Frank
– Both would like to eat both meat and
potatoes

N. Gregory Mankiw, Principles of Economics, 9th Edition © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, 3in whole or in
part.