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Principles of Macroeconomics / Unit 17   MAC 1610 short lesson, about 20 seconds

Partial Specialisation Is Enough

Captions available

The idea

The gains do not require either country to abandon a good entirely. Shifting some workers toward the comparative advantage raises combined output, and the more that shifts, the larger the gain.

In practice

A partial shift produces a partial gain, in the same direction.

Where people slip

Full specialisation is the clean case in the arithmetic, not a requirement of the argument.

Your place on the trail

Every lesson rests on earlier ones and opens later ones. Tap any to jump.

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