PPT-Comparative advantage

Why countries trade Absolute advantage A country has an absolute advantage when it can produce more goods and services than other countries with the same level of inputs lower costunit Germany might be able to produce more cars than the UK with the same inputs and more . 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. By. Cheryl Hamilton. 5. th. Grade. Comparative Adjectives. Comparative adjectives are used to compare two people, places, things, or groups.. Add . er. . to most short adjectives to make their comparative forms.. 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? . 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, . 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. 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.. 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. . The comparative can sometimes feel like a hard topic to tackle because you’ve never had a question like this before. . But try not to be . daunted! . Introduction to Comparative. Comparative simply means . 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 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. 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 .