Class summary 10/28

Econ 10/28/11

Trade actually does good for people, trade creates jobs

There are more tellers than in the past, ATM machines does not matter

Complements vs substitutes

Manufacturing wages in china increase

Marginal product of labor-how much can you produce in a period of time

Wage: $8.00/hr    ,    4 shirts/hr           -à $2/shirt       in China

             $20.00/hr   ,      20shirts/hr      -à   $1/shirt     in USA

relative productivity within the country

when I trade with someone

a.     imports are paid with exports

b.     richer

I buy things from Wegmans, but they never bought anthing from me, infinite trade deficit, trade balance.

What is the impact of a free car on America?

The total number of jobs is more today than before