Fundamental Economic Concepts. By: Ruth Hicks. This will be super boring. …But eventually gets more interesting. economics. The study of scarcity. Resources are limited , while human wants are unlimited .
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By: Ruth Hicks
…But eventually gets more interesting
3. Opportunity Cost
5. Gains From Trade
“DO WHAT YOU DO BEST AND TRADE FOR THE REST!”
Two different types of advantages in trade:
Acountry’s ability to produce a certain good more efficiently than another country.
Two guys are in a field of strawberries and apple trees, all the fruit must be picked. One man is 7ft. tall, the other is 4ft. tall, which man should pick apples?
THE TALL ONE!
…Same goes for countries!
COMPARATIVE ADVANTAGE IN FRY COOKING
ABSOLUTE ADVANTAGE IN BOTH