Chapter 3 Though many people are oblivious to it, we use goods and services that are produced around the world everyday of our lives. We receive these goods because those producing them benefit from the trade. In fact, both parties are benefactors in the trade. How can this be? It has to due with absolute and comparative advantages. Absolute advantage is used when comparing the productivity of one person to another. The person who uses fewer …
showed first 75 words of 543 total

showed last 75 words of 543 total
…this chapter to know why and how two individuals can benefit from a trade, but how is it different when it starts involving everyone and not just two individuals? How is a nation supposed to be able to make sure that goods are received by those who need them, and that products are being made by those who should be making them? How can a country monitor all this trading by people of its economy?