A classroom experiment on the specific factors model

This paper proposes a classroom experiment to illustrate the specific-factors model. In it, students act as decision-makers in an economy comprising two goods and three factors, each is asked maximize value of marginal production by allocating his/her labor force between sectors. Through trading products, all players work whole pursuit higher welfare. From their individual perspectives, they can observe impacts relative price changes international mobility on productivity income distribution. The group perspective, meanwhile, reveals gains arising from trade Together with discussion theoretical predictions, experimental results case studies, this could foster better learner understanding model, both individually collectively.