ABSTRACT

“Every state in the U.S.A. has something it can boast of” according to this song. If this is correct and each state has a sought-after product, then there is a big incentive for states to trade with each other. The singer talks about the product that each state is famous for producing but is attempting to be funny, not truthful. For example, he sings that tents are from “Tent-a-see” and coats are from “Da-coat-a.” Regardless of intent, the song works well at illustrating gains from specialization and trade. Because each state has a specialty, there are significant gains possible with free trade.