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1. How can you graphically demonstrate the outer limit of what can be produced by a person/firm/country?

2. What happens when product inputs are not equally suited to producing the two goods representing you/your firm/your country?

3. What is absolute advantage and how do you calculate it?

4. What is comparative advantage and how do you calculate it?

5. How can you determine terms of trade?

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Econ 1.4 Comparative Advantage: ACDC Econ

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Episode 34: Comparative Advantage & Trade

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Specialization according to absolute advantage and comparative advantage, and the resulting trade patterns. "Episode 34: Comparative Advantage & Trade" by Dr. Mary J. McGlasson is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.