Cloth and Wine at Sea
Age 17 · Economics
Two coasts face each other across a calm sea, one making woollen cloth and the other making wine. Each place can gain by sending what it makes best and receiving what the other makes best.
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In the picture
- A sheep on the green slope: wool-producing livestock on the left coast.
- A stack of folded woollen cloth bolts on the left dock: finished cloth ready to load.
- A row of grapevines on the right hillside: grapes growing in warm sun.
- A group of wooden wine barrels on the right quay: wine ready for shipment.
- A sailing ship in the central sea: its deck carries cloth bolts toward the right.
Examples
- A student who is fast at maths and slow at writing swaps maths help for essay editing with a classmate.
- A café that makes excellent bread but weak coffee buys coffee from a nearby roaster and sells its bread to them.
Key takeaways
- Specialising where the cost of giving up other goods is lower raises total output.
- Exchange lets each side consume a mix it could not produce alone.
Quiz: Cloth and Wine at Sea (Age 17)
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According to the card, what should a country specialize in?
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What does trade allow each side to do?
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Why can both places gain when each specializes in one product and they trade?
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