PPT-Absolute Advantage Comparative Advantage

EQ How do we gain from trade What was the most important document written in 1776 written by Adam Smith The Father of Economics The Wealth of Nations He is my great great great great . 978 978 915 915 978 Input Torque Capacity lbft 14502050 2250 14501650 14501650 14501650 14501650 15501750 1650 15501750 15501750 Engine Coupling Dry Clutch Dry Clutch Dry Clutch Dry Clutch Dry Clutch Dry Clutch Dry Clutch Dry Clutch Dry Clutch Dry C A2 Economics. Aims and Objectives. Aim: . Understand the theory of absolute and comparative advantage.. Objectives: . • Define the theory of absolute . and comparative . advantage. .. Analyse the effects of specialisation. 1. 1. 2.. 3. 4.. Absolute Value Equations. 2. Absolute Value Inequalities. Absolute value inequalities are solved in the same way linear inequalities are solved. . Change the inequality to an equality and solve.. Corn. Wheat. 5. 6. 6. 9. Because the PPF gradients are different, these two countries have different opportunity costs between Corn and Wheat . they will trade!. **Opportunity cost = sacrifice/gain. Lecture 17. Chapter 2, 7. Trade, and Comparative Advantage. 2017 Economics 101 CCC. content. Trade Terminology. Canada and Trade . Production Possibilities Frontier. Comparative & Absolute Advantage. Imagine that you are the manager of a fast-food restaurant. You are outgoing, interact well with customers, and work the cash register proficiently. You are also efficient in the kitchen and can manage several tasks at once, such as making pizzas, preparing salads, and filling drinks. . Comparative Advantage and Trade Barriers. Disclaimer: The views expressed are those of the presenters and do not necessarily reflect those of the Federal Reserve Bank of Dallas or the Federal Reserve System.. Absolute and relative white cells count Absolute value (leukocytes/mm 3 = Total leukocyte count ( cells/mm 3 X Relative value(%) Example: Total leukocyte count = 6000 Segmented forms (relative no.) = 50 % Module 4-”Comparative Advantage and Trade” By. J.A.SACCO Absolute and Comparative Advantage Countries/Individuals trade to maximize production- specialization is the KEY! Absolute Advantage- One nation can produce more output with the same quantity of inputs (factors of production) as the other. Absolute and Comparative Advantage AP Macroeconomics Coach Saucedo Manvel High School They want goods Think of what we would do without if we didn’t trade. To make money. Nations trade for several reasons Absolute Advantage. given . the exact same resources, country A can produce more of a good than country . B. Comparative Advantage. given the same resources, country B produces good X at a lower opportunity cost.   . . Lecture 3: Comparative Advantage Benjamin Graham. Today’s Plan. Housekeeping. Reading Quiz. How trade creates wealth. An Inquiry in the Nature and Causes of the Wealth of Nations (. 1776). “It is a maxim of every prudent mast of a family, never to attempt to make at home what will cost him more to make than to buy. The tailor does not attempt to make his own shoes, but buys them of the shoemaker. The shoemaker does not attempt to make his own clothes but employs a tailor.”. family, never to attempt to make at home . what will cost him more to make than to . buy. The tailor does not attempt to make . his own shoes, but buys them of the . shoemaker. The shoemaker does not .