ECO 365 Week 1 participation Principles of Microeconomics, Ch. 3: Interdependence and the Gains From Trade

Read Ch. 3 of Principles of Microeconomics:

• 3-1 A Parable for the Modern Economy, pp. 48-51
• 3-2 Comparative Advantage: The Driving Force of Specialization, pp. 52-54
• 3-3 Applications of Comparative Advantage, pp. 55-58 

Consider the following as you read:

1. Consider how an economy coordinates the activities of millions of people with varying tastes and abilities.
2. Consider the reasons for economic interdependence.
3. Consider exactly what people gain when they trade with one another.
4. Consider why people choose to become interdependent.