PPT-Dynamic Comparative Advantage and Long-run Roots of the Cri

Institutional Marxian political economy a basic theory of capitalism intermediate theories of capitalist world systems and empirical analyses 1 Dynamic theory of comparative advantage dynamic industries and value added per unit of labour VAL for short. 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. International Trade:. 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.. 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, . 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 . 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. . 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. 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. 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 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. 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.