For those of you that missed class on Monday, we discussed why we should determine trade using comparative advantage, rather than the old way of thinking (pre David Ricardo - of no relation to Ricky Ricardo) of Absolute Advantage. The video below can be used to see how we determine comparative advantage, in this example we are trading precious cargo and I'm dealing with a tough ruler of a neighboring kingdom.
Tuesday, January 13, 2015
Thursday, January 8, 2015
PPC: Showing Opportunity Costs
Let's start at the very beginning
A very good place to start
When you read, you begin with ABC
When you sing you begin with do re mi
Do re mi
The first three notes just happen to be
Do re mi, do re mi
The very beginning for AP Macro is the PPC. The curve is a visual of the basic assumptions and vocabulary of economics - scarcity and opportunity cost. When reviewing and working through problems, if you need a quick refresher on how to draw, read, and change the curve refer to the video below.
A very good place to start
When you read, you begin with ABC
When you sing you begin with do re mi
Do re mi
The first three notes just happen to be
Do re mi, do re mi
The very beginning for AP Macro is the PPC. The curve is a visual of the basic assumptions and vocabulary of economics - scarcity and opportunity cost. When reviewing and working through problems, if you need a quick refresher on how to draw, read, and change the curve refer to the video below.
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