PPT-Comparative v Absolute Advantage

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. 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.. Introduction. Introduction. International Trade Growth. International Trade Milestones. Largest Exporting & Importing Countries. International Trade Drivers. International Trade Theories. The International Business Environment. 1. 1. 2.. 3. 4.. Absolute Value Equations. 2. Absolute Value Inequalities. Absolute value inequalities are solved in the same way linear inequalities are solved. . Change the inequality to an equality and solve.. 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. . 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. 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. . 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   . . Lecture 3: Comparative Advantage Benjamin Graham. Today’s Plan. Housekeeping. Reading Quiz. How trade creates wealth. 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 .