PPT-A comparative advantage

occurs when one person or producer can produce at a lower opportunity cost than another person or producer Opportunity cost is the highestvalued alternative that is given up when a choice is made. 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? . Terms of Trade. Graph the Following PPCs. Shirts. (millions). Wheat. (millions. of bushels). China. 25. 50. USA. 50. 200. Values represent all resources spent on one good. (the other value is 0). Which country has an absolute advantage in shirts?. 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 . Michael is fat. Garfield is fatter than Michael. Justin . Bieber. is the fattest.. The adjectives . fat, fatter . and . fattest. are called the positive, comparative and superlative respectively.. For most adjectives of one syllable and some two-syllable adjectives . The economic resources nations have to produce goods and services are scarce. Decision-makers face trade-offs as the result of scarcity. . The model of the production possibilities frontier is used to analyze the opportunity costs and trade-offs that individuals, firms, or countries face. . 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 . Trade-offs, Comparative Advantage, and the Market System. Sept 28, 2017. 1. 1.1 . Flashback – . Three Key Economic Ideas . We interact with one another in markets.. Market. : A group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade.. Absolute Advantage. Absolute advantage is when someone is the best at doing something. America is the best at producing entertainment. Colt . Brennann. (Hawaii) is the best at throwing touchdown passes. 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 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. 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.. 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 .