International Trade. Numerical and Geometric Problems

Abstract

Only a few students start their international trade studies because they desperately want to set up Lagrange functions, intend to solve a system of eight equations for eight unknown variables or desire to shift the budget constraint to the left or right. The desire for acquisition of knowledge is always led by relevant eco-nomic questions. To answer relevant economic questions we need some expertise on using specific concepts accurately and on building, solving and analysing formal macroeconomic models. This problem set was written to develop this expertise.