Social Sciences and History / Unit 15 SSH 1425 short lesson, about 20 seconds
Absolute Against Comparative Advantage
Captions available
The idea
A country has an absolute advantage in a product when it has a productivity edge, producing more of it. It has a comparative advantage at lower cost in other goods, a lower opportunity cost. Countries that specialize by comparative advantage gain from trade.
In practice
Unit 13 taught the arithmetic.
Where people slip
Gain from trade: consuming beyond production.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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