Comparative Advantage and Gains From Trade (Part 2)

This video continues an example that asks the question "Should a professor do his own typing?" It uses the concepts of comparative advantage and the production possibilites frontier to illustrate the potential gains from trade. This is the part 2 in a two-part series.

For more information and a complete set of microeconomics videos, see
http://www.economistsdoitwithmodels.com/microeconomics-101

by Economists Do It With Models

Category:

Education

Tags:

• economics
• microeconomics
• comparative
• advantage
• trade

[yahooyellow]

in the end you are wrong the secretary will agree for a price between 1/20 and 1/4 not 1/5 and 1/4

[jodiecongirl]

I had put a note on the video to that extent- I had cue cards with notes on them, but they were from a problem that had different numbers! I don't know where the annotations went, so I tried putting them up again.

[thedude1342]

Dear Madam,

You are my economics hero. I love each and every one of your videos, and you will surely save my microeconomics grade.

[yahooyellow]

no worries, i used your video to teach a review session and gave out candy to people who caught the error, great job with these though, this kind of thing has been needing to be done for a while now

[Gabyisms]

You are so excellent. I have a test tomorrow on this and I was freaking out but I have to say your videos are really helping me! :)

[oleg0583]

THANKS

[dachweed]

i do not understand the slope? how does it work???

[bobaloosb]

horrible example

[martel732]

@kapilmails Do I know you, jackass? Because lines are difficult to draw on a board and keep the relationship correct? Go away and don't bother me again.

[kapilmails]

@martel732 Dude, you are like one hell of a lazy teacher. You should be awarded "Bad teacher".

God save your class/school..

[martel732]

Thanks for the videos, Jodie. The boys in my class love your vids. haha. We're tackling Int'l Economics right now and I'm glad this video had the graph - hate to do those things free hand on my board.

[cdog4100]

With respect to the phrase "economy do better," I would probably change that to "economy produce more." Normative stance as opposed to a descriptive one.

[librarychair]

Yay, thank you for proving that you don't leave hierarchical gender roles unchallenged!

[Shocker9]

Is they any reason why the secretary was put at the top of the graph (Slope = -1/20) and the professor second (Slope = -1/4) ? Or have these been simply been arranged like this to gain more output that the 50/50 slope?

Also towards the end, you talk about the 'price' to pay the secretary to type. Is this assuming that the secretary is also required to do a minimum amount of research in her job?