1.4 Comparative Advantage and Trade 🔄

🎯 Learning Targets

• Define absolute advantage and comparative advantage
• Determine (using data from PPCs or tables as appropriate) absolute and comparative advantage
• Explain (using date from PPCs or tables as appropriate) how specialization according to comparative advantage with appropriate terms of trade can lead to gains from trade
• Calculate (using data from PPCs or tables as appropriate) mutually beneficial terms of trade

⏰ What We Did

• Stickered the three-inch three-ring binders
• Calculated absolute advantage
• Calculated comparative advantage
• Calculated favorable terms of trade

⚙️ Resources

• 1.4 Comparative Advantage and Trade
• 1.4 Comparative Advantage and Trade Problem Set

📖 Corresponding Reading

💻 Homework

• Complete Absolute and Comparative Advantage problem set before class on M 22 Sep 2025, if necessary