economics
Though many people are oblivious to it, we use goods and services that are produced around the world everyday of our lives. We receive these goods because those producing them benefit from the trade. In fact, both parties are benefactors in the trade. How can this be? It has to due with absolute and comparative advantages. Absolute advantage is used when comparing the productivity of one person to another. The person who uses fewer resources to produce a good has an absolute advantage over the other. This person uses fewer inputs to produce some good and therefore is more efficient in producing this good. There is yet another way in which we can compare the ability of two people who produce a good. Opportunity cost is what must be given up in order to gain something else. When describing the opportunity cost in
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Some common words found in the essay are:
, Forrest Gump, Tiger Woods, comparative advantage, opportunity cost, produced outside, produced outside united, outside united sold, opportunity cost trade, forrest gump, advantage person, outside united, benefit trade, absolute advantage, person fewer, united sold,
Approximate Word count = 567
Approximate Pages = 2 (250 words per page double spaced)
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