TAILIEUCHUNG - Lecture Principles of economics - Chapter 2: Comparative advantage

This chapter introduces two Core Principles (Comparative Advantage and Increasing Opportunity Cost) to show how specialization and trade increase the production and consumption of all goods. Further, the chapter sets up the production possibilities curve and then uses it to show precisely how specialization enhances the productive capacity of an economy. | Comparative Advantage Chapter 2 McGraw-Hill/Irwin Copyright © 2015 by McGraw-Hill Education (Asia). All rights reserved. 1 Learning Objectives Explain and apply the Principle of Comparative Advantage Explain and apply the Principle of Increasing Opportunity Cost (also called the Low-Hanging-Fruit Principle) Identify factors that shift the menu of production possibilities Explain and apply the role of comparative advantage in international trade and describe why some jobs are more vulnerable to outsourcing than others 2 Exchange and Opportunity Cost Joe Jamail, a highly successful trial attorney, employs another attorney to write his will Writing your own will Opportunity cost of 2 hours Hiring someone to spend 4 hours on your will Making the right economic choice Do It Yourself only when Opportunity cost < hired cost 2 hours $10,000+ $3,200 Priceless 3 Exchange and Opportunity Cost A person has an absolute advantage at a particular task if he or she can perform the task in fewer .

• Kinh tế học
• Principles of economics
• Lecture Principles of economics
• Market imperfections
• The international economy
• Principle of comparative advantage
• Comparative advantage
• Ten principles of economics
• People face tradeoffs
• Opportunity cost
• Marginal changes
• Economics of information
• Consumer choice
• Free rider problem
• Market transactions
• Welfare Economics
• Consumer surplus
• Demand curve
• Efficiency of markets
• Nature of an externality
• Market inefficiency
• Negative externalities
• Principles of microeconomics
• Lecture Principles of microeconomics
• Scarce resources
• Scarcity implies choice
• Choice implies cost
• Principles of agricultural economics
• Agricultural economics
• Economics of agricultural production
• Theory of consumer behaviour
• Economics of market demand
• Dynamics in demand analysis
• Analysis of agricultural markets
• Agricultural markets
• Economics of trade
• Costs of taxation
• Deadweight loss
• Laffer curve
• Supply side economics
• Market forces
• Supply and demand
• Market economies
• Competitive Markets
• Thinking like an economist
• Economic models
• Circular flow diagram
• Production possibilities frontier
• The gains from trade
• Production possibilities
• Absolute advantage
• Costs of production
• Total revenue
• Total cost
• Opportunity costs
• Price elasticity of demand
• Price elasticity
• Midpoint method
• Demand curves
• Factors of production
• Demand for labor
• Production function
• Marginal product of labor
• Controls on prices
• Price ceiling
• Price floor
• Market outcomes
• Theory of consumer choice
• Budget constraint
• Indifference curve
• Marginal rate of substitution
• Measuring nation’s income
• Economy’s income
• Gross domestic product
• Components of GDP
• International trade
• Determinants of trade
• Equilibrium without trade
• Production and growth
• Economic growth
• Monetary system
• Functions of money
• Federal reserve
• Central bank
• Open economy macroeconomics
• Economy macroeconomics
• Closed economy
• Open economy
• Public goods
• Common resource
• Types of goods
• Cost benefit analysis
• Aggregate demand
• Aggregate supply
• Short run economic fluctuations
• Economic fluctuations
• Tax system
• Federal Government
• Marginal tax rate
• Budget surplus
• Macroeconomic policy
• Debate over macroeconomic policy
• Stabilize the economy
• Monetary policy