Overview: Comparative Advantage and Trade

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After you complete this unit, you should be able to:

  • Define production-possibilities frontier, and budget constraint. comparative advantage, tariff, quota, terms of trade, zero-sum game, positive-sum game, and negative-sum game.
  • Explain how specialization and exchange can result in a consumption-possibilities frontier that is more favorable than one's production-possibilities frontier.
  • Compute opportunity costs when given information about production possibilities.

Copyright Robert Schenk