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Lecture Chapter 3: Interdependence and the Gains from Trade

Chia sẻ: Nguyen Thị Kim Chi | Ngày: | Loại File: PPT | Số trang:30

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Lecture Chapter 3: Interdependence and the Gains from Trade, In this chapter you will: Interdependence and trade allow everyone to enjoy a greater quantity and variety of goods & services. Comparative advantage means being able to produce a good at a lower opportunity cost. Absolute advantage means being able to produce a good with fewer inputs. When people – or countries – specialize in the goods in which they have a comparative advantage, the economic “pie” grows and trade can make everyone better off.

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