Gonna Eat Me Some Peaches
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Giovanni, we have to make money. We are so broke.
Stanley and his brother Giovanni are off to the market. They want to make some money for he family.
Stanley you are right. If we are going to survive the winter, we are gonna need some money.
We are gonna sell our goods. We are selling peaches.We specialize in making and selling peaches.
How are we gonna make some money at the market?
Be careful of the bridge, Giovanni. If you drop and die our division of labor will decrease.
That's true. But we should also consider opportunity cost. If you died I would have to make some more critical decisions.
We are trying to sell some peaches. Would you like to buy some?
No coats for us!
Coats for sale! Coats foe sale! Do you wanna buy some Coats?
What is trade?
How about we come to a compromise? We can trade our goods. We will have economic interdependence. So basically we are trading with each other.
I will have the comparative advantage and the absolute advantage. We will do it. We will trade with you.
Trade will make us better off.
Trade is when you exchange a good or service for something in return.
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