when a person can produce more of a certain good/service than someone else in the same amount of time
national- When a country can produce a good/service than another country can in the dame period of time
Comparative Advantage
when it cost less to produce a product than to buy it at a lower opprotunity cost
Input:
- # of hours to do a job
- # of acres to feed a horse
- #of gallons to paint a house
- tons per gallon or mph
- TV's produced per hour
Best way to remember is that input is the # of while output is per something
ReplyDeleteKnow that all countries have an absolute advantage with a certain product. If a country had an absolute advantage in all areas there would be more imports and no exports.
ReplyDelete