Subject:
3:Interdependence and the Gains From Trade Intro we rely on other people for goods and services we buy interdependence is possible bc of trade A Parable for the Modern Economy trade allows a greater variety benefit $$$ by specializing in what your best at Production Possibilities spend all your time on one item, can produce lots of that item and none of the other and vice versa, or can split time between the two rancher & farmer have to make a decision, tradeoff between time on meat and time on potatoes self sufficiency means consuming only what you can produce Specialization and Trade rancher and farmer: specializing in what they?re good at allows them to make the most of that item as possible.
