Just started studying for AP Micro and Macro for next year, and I honestly find your videos to be more comprehensive when compared with Mr. Clifford's videos (his are still great, of course!) Thanks for thoroughly explaining the calculations
Why would big country want nothing less than 1/2 ton of meat. I'm probably overthinking this, but wouldn't they want to give up less for 1 ton of grain?
Since producing a ton of grain costs Big Country 1/2 a ton of meat, if they get less than their cost, the would be worse off for having traded. They want at least their cost when trading. Consider selling chocolates that cost you $0.50 to make. You wouldn't accept less than $0.50 when you sell them as you wouldn't benefit. Sellers always want to receive more than their costs. I hope that helps!
Peace. I literally just bought your package with my last call my hard times friend anywho I'm so excited I can kind of understand you better than any of my teachers and I got a test tonight I might not might pass that one but I feel with your information I'll be able to pass the course ultimately thanks again
When the numbers that change between countries (or entities) are raw materials or resources that are used to produce the final good, use the input formula. When they are the final good, use the output formula. The comparative advantage review game on ReviewEcon can help you practice. Good luck!
hi sir i have a question want to ask, how we get the mutually beneficial terms for grain and meat between Big country and Small country. By using the equation? Can you explain this, thank you so much.
Mutually beneficial terms of trade will fall between both countries' opportunity costs. So that would be 1 ton of meat trading for 1- 2 tons of grain and 1 ton of grain trading for 1/2 -1 ton of meat.
I teach this a bit differently. Students create an identity equation and solve for the per unit opportunity cost. For Big Country 80G = 40M. Divide both sides by 40 to get 2G = 1M. For Little country 1G = 1M and since Little Country's 1G < 2G for Big Country, Little country has the comparative advantage in meat.
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Just started studying for AP Micro and Macro for next year, and I honestly find your videos to be more comprehensive when compared with Mr. Clifford's videos (his are still great, of course!) Thanks for thoroughly explaining the calculations
Why would big country want nothing less than 1/2 ton of meat. I'm probably overthinking this, but wouldn't they want to give up less for 1 ton of grain?
oh wait, is it because they want to produce more meat since they are producing and have the comp adv on grain?
Ill use the review econ game to practice 👍
Since producing a ton of grain costs Big Country 1/2 a ton of meat, if they get less than their cost, the would be worse off for having traded. They want at least their cost when trading.
Consider selling chocolates that cost you $0.50 to make. You wouldn't accept less than $0.50 when you sell them as you wouldn't benefit. Sellers always want to receive more than their costs.
I hope that helps!
@@ReviewEcon yes that makes sense thank you so much sir 🙏
Blud came in clutch 🔥
Thanks! I think. 😅
Ay man I just wanna say thank you for these videos, saving some of our futures lol
You're very welcome!
Peace. I literally just bought your package with my last call my hard times friend anywho I'm so excited I can kind of understand you better than any of my teachers and I got a test tonight I might not might pass that one but I feel with your information I'll be able to pass the course ultimately thanks again
I sure hope that test went well for you!! 🤞🤞
what do specalization mean?
It means you don't produce everything, you produce just one thing. Then you trade.
Hello, how do I know when to use the input formula and when to use the output formula
When the numbers that change between countries (or entities) are raw materials or resources that are used to produce the final good, use the input formula. When they are the final good, use the output formula.
The comparative advantage review game on ReviewEcon can help you practice.
Good luck!
@@ReviewEcon ty
hi sir i have a question want to ask, how we get the mutually beneficial terms for grain and meat between Big country and Small country. By using the equation? Can you explain this, thank you so much.
Mutually beneficial terms of trade will fall between both countries' opportunity costs. So that would be 1 ton of meat trading for 1- 2 tons of grain and 1 ton of grain trading for 1/2 -1 ton of meat.
I teach this a bit differently. Students create an identity equation and solve for the per unit opportunity cost. For Big Country 80G = 40M. Divide both sides by 40 to get 2G = 1M. For Little country 1G = 1M and since Little Country's 1G < 2G for Big Country, Little country has the comparative advantage in meat.
I like that method!
thanks! great video
You're welcome! And thank you!
Excellent
Thank you!
shoutout to K-Money for putting us on u