CONTENTS 
PART 1 
THEORY 
THREE CASES. . 
CHAPTER 1 
PAGES 
3-6 
Preliminary assumptions. Three kinds of differences in cost: 
absolute, equal, and comparative differences, 3. 
CHAPTER 2 
Case I — ABsoLuteE DIFFERENCES IN COST . 
Barter of two commodities under the simplest conditions, 7. 
The barter terms of trade, 8. Trade conducted with use of 
money, 11. Domestic supply price, 11. Various possibilities 
in exchange of two commodities produced with absolute differ- 
ences in costs, 12. The gain from exchange greater to the 
country of higher money wages, 14. Absolute differences in cost 
found mainly in trade between tropical and temperate coun- 
tries, 17. 
218 
CHAPTER 3 
Case II — EquaL DirFrereNcES IN CosT 
EL 
“He 
19-22 
Commodities produced with equal differences in labor cost 
will not be exchanged, 19. What the situation is when money 
is used and domestic supply prices are computed, 20. Money 
wages adjust themselves to differences in effectiveness of labor, 
21. 
CHAPTER 4 
Case IIT — ComparATIVE COSTS . 
Two forms of comparative advantage in production: superior 
advantage, inferior disadvantage, 23. How comparative ad- 
vantages operate under barter; how when trade is conducted 
with money, 24. Effect of changes in demand on the barter 
23-33 
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