1.4 Comparative Advantage and Trade
Completion requirements
MKT-2.A
a. Define absolute advantage and comparative advantage.
b. Determine (using data from PPCs or tables as appropriate) absolute and comparative advantage.
MKT-2.B
a. Explain (using data from PPCs or tables as appropriate) how specialization according to comparative advantage with appropriate terms of trade can lead to gains from trade.
b. Calculate (using data from PPCs or tables as appropriate) mutually beneficial terms of trade.