ECN 104 Lecture Notes - Comparative Advantage, Absolute Advantage, Opportunity Cost

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Interdependence everyday you rely on many people from around the world, most of whom you"ve never met, to provide you with the goods and services you enjoy. One of the ten principles from chapter 1: We now learn why people and nations choose to be interdependent, and how they can gain from trade. We will look at how much of both goods each country produces and consumes. If the country chooses to be self sufficient. Canada has 50,000 hours of labour available for production, per month. Producing one computer requires 100 hours of labour. Producing one ton of wheat requires 10 hours of labour. Goods produced domestically and sold abroad to export means to sell domestically produced goods abroad. Goods produced abroad and sold domestically to import means to purchase goods produced in other countries. The ability to produce a good using fewer inputs than another producer.

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