ECO102H1 Lecture Notes - Comparative Advantage, Quinoa, Allocative Efficiency
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ECO102H1 Full Course Notes
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Steve holt"s january 25th, 2013 article on takepart. com: Quinoa"s dark secret (foreign demand, soil erosion drive up the crop"s price and threaten its future - and the future of those who grow it) There will be an increase in production. Marginal productivity will be higher if they are working in a industry in which they have a comparative advantage. By specializing, each country is more efficient on average. Learning by doing & returns to scale (may belong in pt. 4?) It is a common/standard measure of well-being. Jobs will be gained in industries with comparative advantage. There will also be jobs lost in other industries. Amount of each factor of production you were endowed with. About the quantity of labour and quantity of capital available. Produce good that use abundant factors in their production. You can invest to make yourself more comparative advantage/ may also lose it. Innovation and invest can change comparative advantage.
