Answered: Use the Feynman technique throughout.…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 4QR

See similar textbooks

Related questions

Question

Use the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all:

9. Explain the difference between absolute and comparative advantage in a family setting, i.e.
using parents and children. What can we glean from knowing about comparative and
absolute advantages?

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Expert Solution