PPT-Absolute & Comparative Advantage

How do we determine what to produce Absolute Advantage Absolute advantage is when someone is the best at doing something The USA is the best at producing entertainment Nick Saban is the best at coaching college football. 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. Introduction. Introduction. International Trade Growth. International Trade Milestones. Largest Exporting & Importing Countries. International Trade Drivers. International Trade Theories. The International Business Environment. Men, women, and time needed. . My wife is good at ironing while I am good at changing tires. To iron 1 shirt. To change one tire. women. 6. 20. men. 10. 15. Minutes needed to produce. What does this graph immediately tell you? . Prepared for:. Agency for Healthcare Research and Quality (AHRQ). www.ahrq.gov. Introduction to recombinant activated factor VII (rFVIIa). Process for developing the comparative effectiveness review (CER). License Agreement for Use of Electronic Resources. The illustrations and photographs in this PowerPoint are protected by copyright. Permission to use these materials is strictly limited to educational purposes associated with the course for which you have adopted . Bijvoet. . Center. , Utrecht University (NL). ECS4-School, Warsaw, 2-7 July, 2017. H.D.Flack. (1943-2017). J.M.Bijvoet. (1892-1980). Absolute Structure. The term ‘absolute structure’ is a generalisation of the term ‘absolute configuration’ of objects such as molecules or crystals without an inversion centre or mirror plane. The concept also includes ‘absolute polarity’ of an object or crystal.. Everyone does best when each person (or each country) concentrates on the activities for which his or her . opportunity cost . is lowest.. Principle of Comparative . Advantage. 117$. 140$. Absolute . 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. Unit 1. AP Micro. Stater. It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy.. Adam Smith, . The Wealth of Nations. (1776). 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. Arthur has no comparative advantage.. Ben should do both tasks because he has an absolute advantage in both.. Arthur has a comparative advantage in shearing sheep and Ben has a comparative advantage in milking goats..