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Comparative Advantage Simplified - IB/AP/College - ReviewEcon.com

Comparative Advantage Simplified - IB/AP/College - ReviewEcon.com

Learn how to calculate comparative advantage and terms of trade using inputs, outputs, or production possibilities curves. Also learn the definition of Absolute Advantage. These concepts appear in Microeconomics and Macroeconomics so you better practice them. Study and earn a 5 on the AP Economics Exams!

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Comparative Advantage Examples

Examples of comparative advantage show how trade between two countries can make each better off. Compared to their pre-trade positions, trade makes both countries better off because in each country A) total employment is greater. B) total consumption of goods is greater. C) wages are higher. D) total welfare is greater.

Examples of comparative advantage show how trade between two countries can make each better off. Compared to their pre-trade positions, trade makes both countries better off because in each country A) total employment is greater. B) total consumption of goods is greater. C) wages are higher. D) total welfare is greater.

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