Specialization
- Individuals and countries can be made better off if they will provide in what they have a comparative advantage and then trade with others for whatever else they want/need
Absolute advantage
- Producer that can produce the most output or requires least amount of inputs(resources)
Comparative advantage
- producer with the lowest opportunity cost
- countries should trade if they have a relatively lower opportunity cost
- an output problem presents data as products produced given a set of resources
- input problem presents data as amount of resources needed to produce a fixed amount of output
- when identifying absolute advantage input problems change the scenario from who can produce a given product with the least amount of resources
Your blog is very neat and easy to read! I think you could've provided instructions on how to solve the picture you added! That would've been very helpful! Other than that I really like the format of your notes and how they look.
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