Charlie, by increasing his absolute advantage, was able to get a better deal in negotiating for plates. Before, he traded 1 cup for 1 plate but now even though he is still producing cups, he can trade 1 cup for 2 plates. At the end of the day they both win through trading but Charlie wins more since he invested that money in gaining absolute advantage.
Only in absolute terms. Charlie has a larger economy, therefore while it may appear his gain is more, but percentage-wise it doesn't necessarily have to be so.
You are super awesome at a explaining it for me I had a real time understanding it by reading the text book . Test is in two days you've helped me a lot. Thank you.
Something is incorrect here. If you are looking at an output graph or table, you don't know how many inputs there were. It doesn't matter. All you know is that the tradeoff leads to each (country) having a different comparative advantage as long as the PPFs are not parallel. You can assume that each country is doing its best - whatever the inputs. (Even if it wasn't doing its best - it doesn't matter for this example.) If the slopes of the two PPFs are different, there are advantages to trade. The stuff about inputs here is confusing. All you need to know is that the PPF is given. Also, the example should be between countries. Then, people are not thinking of Patty or Charlie - where individual effort is more apparent than an entire country so we are not thinking of two people where the student may cloud their mind by thinking about hours, effort, laziness, whatever. In your example - if someone becomes more efficient - again better to think of a country. Otherwise, you start thinking that one of the people worked more hours, or got a new machine. Again, it doesn't matter.
YOu live in a dream world. Read a bit of history on England and the USA and tell me if they got to their situation because they opened up their own markets. Read "Bad Samaritans" by Ha Joon Chang and learn something before repeating this that you justheard somewhere which is disconnected from reality.
Ok, now show the Prebisch critique of this abstract/unreal idea of specialization and trade based on comparative advantage that benefits all. Do the world a service and stop repeating this ideology which passes as science. The world does not work according to this.
# 2 plates 1 cup
+a Haraldh Was watching the video and wanted to post exactly the same, but then i saw your comment :(.damn
lmao, wasn't just me!
what is wrong with that? he is not wrong...
Charlie, by increasing his absolute advantage, was able to get a better deal in negotiating for plates. Before, he traded 1 cup for 1 plate but now even though he is still producing cups, he can trade 1 cup for 2 plates. At the end of the day they both win through trading but Charlie wins more since he invested that money in gaining absolute advantage.
Only in absolute terms. Charlie has a larger economy, therefore while it may appear his gain is more, but percentage-wise it doesn't necessarily have to be so.
to summarise: trade is based on Comparative Advantage NOT Absolute Advantage!.
No its is based on HO theory of international trade ✌️... Its d most modern theory explainin why trade happens
You are super awesome at a explaining it for me I had a real time understanding it by reading the text book . Test is in two days you've helped me a lot. Thank you.
wow this was actually pretty interesting. I never thought economy could be so cool.
Anyone else think about something when Khan said "2 plates and 1 cup"? xD Anyway, really nice video. Helps me with studying for my exam. Thanks Khan!
Studying this before my exam!! I understand it completely now thank you
How was your exam ?
Brilliant Explanation!
Thanks this really helped!
khan academy saved my DEC and BA luv you!!!
Luv u too
thanks vlad
Man, bless you .. you are amazing
This helped me so much, thank you.
Absolutely Understood ! I was give a tumbs up
These are the best i was thinking bout AP Macro is there vids for that tooo?
is it possible to have both the absolute and comparative advantage?
guess if their PPF is parallel
hawaii137 no
Awesome.. thank u so much.. easy language and great conveyance power u have.
Is opportunity cost does matter in absolute advantage in any way ?
Something is incorrect here. If you are looking at an output graph or table, you don't know how many inputs there were. It doesn't matter. All you know is that the tradeoff leads to each (country) having a different comparative advantage as long as the PPFs are not parallel. You can assume that each country is doing its best - whatever the inputs. (Even if it wasn't doing its best - it doesn't matter for this example.) If the slopes of the two PPFs are different, there are advantages to trade. The stuff about inputs here is confusing. All you need to know is that the PPF is given. Also, the example should be between countries. Then, people are not thinking of Patty or Charlie - where individual effort is more apparent than an entire country so we are not thinking of two people where the student may cloud their mind by thinking about hours, effort, laziness, whatever. In your example - if someone becomes more efficient - again better to think of a country. Otherwise, you start thinking that one of the people worked more hours, or got a new machine. Again, it doesn't matter.
nah
Omg thanksss. This helped alot
oh i just wanted to read this again.
THanks!
thanks sir, you are amazing.
40 - 10 = 20?
thank you so much (:
i love your work your my hero
p.s i didnt watch the video i just wanted to say thanks :D thanks man!
YOu live in a dream world. Read a bit of history on England and the USA and tell me if they got to their situation because they opened up their own markets. Read "Bad Samaritans" by Ha Joon Chang and learn something before repeating this that you justheard somewhere which is disconnected from reality.
Right, such a free market when you’ve got two digit tariffs on nearly everything
question if c produces bananas usin g more labour capital etc what would c have
So do we always use the x axis when determining the OC?
thx!!! it's seriously easy to understand abour economics :D
7:55 2 plates 1 cup :D
LOL
Is it bad that I want little animated Patty and Charlie? With towers of cups and plates falling all over the place?
+Felicia Cravens yo Talisha!!
2plates1cup?
Ok, now show the Prebisch critique of this abstract/unreal idea of specialization and trade based on comparative advantage that benefits all. Do the world a service and stop repeating this ideology which passes as science. The world does not work according to this.
I'm 2 years old (srs)
How old are you now?
Does anyone else think he sounds a lot like Tom Hanks?
am i the only one that doesnt get audio?
Yes. Your internet is boo boo.
lol if they got that reference then i think they are fairly screwed already
2 girls one cup
@QuasiBelgium come on.... there are kids watching this
I know, rite like "Wake up sheeple" LMAOROFL
Rofl
@Sabrijabro go outside kid
im so immature i keep laughing when he says ppf bc pp ahhahahhhaha
If kids can get that joke, its bad enough. haha
Can't stop laughing
khan makes a lot of verbal mistakes
your voice is so hot