What is comparative advantage? And why is it important to trade? This video guides us through a specific example surrounding Tasmania — an island off the coast of
What is comparative advantage? And why is it important to trade? This video guides us through a specific example surrounding Tasmania — an island off the coast of Australia that experienced the miracle of growth in reverse. Through this example we show what can happen when a civilization is deprived of trade, and show why trade is essential to economic growth.
In an economy with a greater number of participants trading goods and services, there are more ways to find a comparative advantage and earn more by creating the most value for others. Let’s dive right in with an example from our new friends, Bob and Ann. This video is from Don Boudreaux's Trade and Prosperity section of Everyday Economics.
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Great Lectures Prof. Now at 6:19 in your video you posed a very important Q&A on comparative advantage (CA) as follows... How do you know what your (CA) is? "what you get paid for it..." well it might be true in part but a bit over generalized as the word good is "subjective".
we are all good at something but to some degree. I used to have this saying "You're good with regards to the subset of people you around at any particular time". That being the case could you elucidate a bit on what you meant by that.