분야
docx복습 1) Q : Absolute advantage, Comparative advantage
Absolute advantage : The ability to produce a good using fewer inputs than another producer.
Comparing the productivity of one person, firm, or nation to that of another. The producer that requires a smaller quantity of inputs to produce a good is said to have an absolute advantage in producing that good.
Comparative advantage : The ability to produce a good at a lower opportunity cost than another producer.
Describing the opportunity cost of two producers.he producer who gives up less of other goods to produce Good X has the smaller opportunity cost of producing Good X and is said to have a comparative advantage in producing it
복습 5) Q : Trade.
The gains from specialization and trade are based not on absolute advantage but on comparative advantage. When each person specializes in producing the good for which he or she has a comparative advantage, total production in the economy rises. This increase in the size of economic pie can be used to make everyone better off.
The principle of comparative advantage establishes that there are gains from specialization and trade.
Trade can benefit everyone in society because it allows people to specialize in activities in which they have a comparative advantage.