Principles of Microeconomics / Unit 16 MIC 1502 short lesson, about 20 seconds
Absolute Advantage
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The idea
A country has an absolute advantage in a good when it can produce more of it with the same resources, from more resources, more productive ones, or endowment: oil, farmland, climate.
In practice
Eight tons of wheat per worker against two.
Where people slip
Absolute advantage says who is more productive; it does not say who should make what. That is the next idea.
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