Opportunity cost and comparative advantage using an output table | AP Macroeconomics | Khan Academy
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- čas přidán 16. 11. 2017
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In this video we use the PPCs for two different countries that each produce two goods in order to create an output table based on the data in the graph. We then use the output table to determine the opportunity costs of producing each good. Finally, we determine which country as comparative advantage in each good.
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AP Macroeconomics on Khan Academy: Welcome to Economics! In this lesson we'll define Economic and introduce some of the fundamental tools and perspectives economists use to understand the world around us!
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It literally took me like two hours and I tried to read a chapter twice on this and got nowhere.. watched this 10 min video once and completely understand now what I’m supposed to do for my homework 😂
What would I do without Khan Academy 😢 ? Thank you Mr Philanthropist for creating such a channel 😁
Can you please tell me why we are studying this topic again and again?
@@basimsheikh2391 because you are
@@basimsheikh2391 This Channel here reminds me of Hbomberguy;
my Favorite Place to learn and laugh wihile doing so.
Well, that and Veritasium.
@@basimsheikh2391 maybe because people don't understand trade improving everyone's benefit, specifically from political groups on all sides being against free trade.
Even if you are a smaller person/economy there is something you can add to the bigger person/economy
Good Explaning! Thx!
Thank you for your explaination, i have been confused about how to calculate the OC of each part for long time. I just remembered it without really understand it. Thank you so much!!!
Wow,what an explanation !
this guy rocks !!!
love you sal keep doing this!
But grammar though??
FANTASTIC
Sir super explanation
output table = both variables maximum output given interval PPF:
*oc. 1x in y = 1x = y / x
agent a : oc. 1 basketball = 6 / 8 = 0,75 shoes
agent b : oc. 1 basketball = 4 / 4 = 1 shoes
*oc. 1y in x = x / y
agent a : oc. 1 shoe = 8 / 6 = 1,33 basketballs
Agent b : oc. 1 shoe = 4 / 4 = 1 basketball
lowest oc. = comparative advantage
Simple and useful like Sal usually is :)
What about the opportunity costs given a portfolio of 3 products? would we do this pairwise or should we make the something like 4b = 4s = 4h?
In our university, they taught us that to get the opportunity cost, you divide the figure in the upper box by the figure in the lower box. In this sense, the opportunitu cost of producing 1 ball would be 8/6 socks. I'm really confused right now
box positions aren't constant, u can flip em' anytime
It doesn't work that way
damn i was learning this like 3 weeks ago
what to do if opportunity cost for both countries is lower in producing basket balls?
I have to ask, our lecturer says we must deduct the OC from the net profit. Why oh why? Is the OC of say £1000 ACTUALLY deducted from the net profits, where does it go if so? Seems bonkers haha Please help
The reformulation of Ricardo's numerical example in terms of opportunity costs by Gottfried von Haberler was based on a crucial misinterpretation. See:
www.academia.edu/32214661/Ricardo_s_Numerical_Example_Versus_Ricardian_Trade_Model_A_Comparison_of_Two_Distinct_Notions_of_Comparative_Advantage
I found your link and has been reading through your other works, they're very insightful. I still haven't finished reading this paper totally before I was drawn to your other article concerning comparative advantage and the labour theory of value.
Your articles have taken away the fog I so long had but I never knew,
Your exposition of Sraffa and thorough reading of classical literature vis-a-vis its twisted modern counterpart has me thoroughly engaged.
@@akashp01 Thank you for your kind comment. I am very pleased to read that my papers were useful to you.
and "BASKETBALLS"
If you were to extend the derivatives into an additional dimension it explains how Trumpism works.
Notes
It's really interesting to see examples of how the absolute advantage is different than the comparative advantage. Even though one country could produce more shoes than the other per day, the first country would have no basketballs. So specialization would be much more favorable.
First one 😁 it's weekend we don't need to watch this😑
Spectre32
Good for u !
Spectre32
Looks like u are high
Omg lolololololol lolololol my teacher showed this videos in fourth grad and I can tell this isn’t very fun, omg hate
onumae puriyalae ulagathulae
????
@@rupasuhag8536 I couldn't understand anything in this world , it's jus our local phrase we utter when one couldn't understand.
cost uh
onumae puriyalae ulagathulae