How two parties can get better outcomes by specializing in their comparative advantage and trading
Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/microeconomics/choices-opp-cost-tutorial/gains-from-trade-tutorial/v/comparative-advantage-and-absolute-advantage?utm_source=YT&utm_medium=Desc&utm_campaign=microeconomics
Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/microeconomics/choices-opp-cost-tutorial/production-possibilities/v/economic-growth-through-investment?utm_source=YT&utm_medium=Desc&utm_campaign=microeconomics
Microeconomics on Khan Academy: Topics covered in a traditional college level introductory microeconomics course
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy's Microeconomics channel: https://www.youtube.com/channel/UC_6zQ54DjQJdLodwsxAsdZg
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Suppose that currently the United States produces 500 tons of shrimp and 1,000 tractors while Thailand produces 100 tons of shrimp and 1,500 tractors. Each country only consumes what it produces. Now assume that trade opens up between the two countries. If Thailand focuses on producing only shrimp, how many more tractors can be produced in total while keeping total shrimp production the same? answer is 1500 but hoooowww?
We assume 1 cup for 1 plate. However, what if market prices were different? What if we produced cars from one hand and eggs from the other hand? maybe every country would prefer to specialize in cars production, because they sell for a much higher price on the market. How do we take into account relative prices and so on?
Dude youtre amazing at explaining. I'm taking an online Macro course which I have to understand on my own. I found it a bit tricky because the given e-book doesn't really detail their explanations like you. Bravo!
you are awesome.... so clear and funny as well. It is a pleasure to learn from you. I go to a leading business school (top 3) for MBA. The MBA costs > USD 100,000 But our teachers suck. THE BEST THINGS IN LIFE ARE FREE :)
Excellent presentation. Take a look at a book on comparative advantage.
There are no gains from specialization only weaknesses when exploited you die or lose to someone who never specialized.
UK never specialized and easily conquered Gambia whose only product is Peanuts.
This is my theory of Comparative Advantage Trap in a peanut shell.
By not specializing in only what you are good at, you increase your purchasing power against someone else who specializes.
Food is 1/3rd of the US average household budget. If they didnt specialize...and grew their own food they would have that money to out bid others competitively for other goods.
Growing your own food takes time, effort and material resources like land and equipment. The opportunity cost of all of those things usually outweighs the financial benefits of not having to buy food. Have you ever known anyone to get rich by growing crops in their backyard?
How mean! First of they could have dyslexia, or maybe just made a typo. Why 'laugh out loud' at that and then question their intelligence? If they just can't spell, note that it doesn't take an intelligent person to know how to spell, it just requires having a good memory. I believe that you and your 9 amigos ought to be saddened for finding humour in belittling a 13 year old.
thanks for your wonderful lecture and i get so many information form your each Economic lecture and appreciate for your great job and hope that you will do more better in the future wish you all the best
Just how much does this Mr. Khan know? It's not like he's a jack of all trades but a master of none but he actually knows what he's talking about and, most importantly, he knows how to communicate that knowledge. Whatta bawss. (@[email protected])
The following is some advice from our expert English editing staff regarding how to properly use articles.
I need to work for an hour before we go to dinner.
Sarah bought a book yesterday. She read the first three pages when she got home and decided to return the book because it was boring.
Capitalization in English entails quite a bit more than simply knowing to begin names and titles with capital letters. Our editors will guide you through the quagmire that is capitalization.
Definition of article.
Examples of article in a Sentence.
He has published numerous articles in scholarly journals.
Article 3 of the U.S. Constitution.
The company amended its articles of incorporation.
Recent Examples of article from the Web.
Nicol Bolas gives his own account of history to Naiva . . . and makes her an offer.
Palladia-Mors, the Ruiner.
Commander 2018 Upgrading Aminatou the Fateshifter.
Wizards of the Coast.
Core Set 2019 Standard Showdown.
Grand Prix Brussels.
Grand Prix Orlando.
Grand Prix Los Angeles.
Grand Prix Providence.
Grand Prix Prague.
Grand Prix Richmond Legacy.
Grand Prix Richmond Standard.
Core Set 2019 Store Championship.