Learning Goal: I’m working on a macro economics discussion question and need an explanation and answer to help me learn.
First, watch these videos in addition to the lecture videos made by your instructor:
Trade is Made of Win, Part 1: https://youtu.be/y0gGyeA-8C4 (Links to an external site.)
Trade is Made of Win, Part 2:https://youtu.be/7yOHjRThM_o (Links to an external site.)
Trade is Made of Win, Part 3: https://youtu.be/qdcQLWGaJoM (Links to an external site.)
Then, think of something in your own life that you had to do recently where you made a trade of some sort with a person (or persons), which enabled both of you use the principle of comparative advantage to conserve resources (any resource, including money, time, land, energy, etc.). Describe what you did, and discuss who had comparative advantage in each activity. Did either of you have absolute advantage in either activity? You can use numbers to help illustrate your example, but it isn’t required. Remember, to have comparative advantage, you are only looking at what you are “least bad” at doing when comparing YOUR choices. You are NOT looking at what you are best at compared to someone else.
Some possible examples to get your brains working: allocating household chores between roommates, working on a group project, playing team sports, playing a video game with friends, etc.
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