ECON101 Lecture Notes - Opportunity Cost, Absolute Advantage, Comparative Advantage

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ECON101 Full Course Notes
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ECON101 Full Course Notes
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Interdependence- interaction between many people for the consumer to buy the product. If you buy a cup of coffee from a coffee shop, the coffee shop most likely didn"t grow the coffee beans in their backyard. The coffee beans were probably grown in another country by somewhere else, and imported to yours by the pilot that flew the plane, and all the people in between that helped ship the coffee beans. Therefore, by the interactions between the many people to get a product to the consumer, people become interconnected, and this interaction is called interdependence. When a country is self-sufficient it means there is no trade. You own a farm and you grow your own blueberries and you sell those to your customers. Export- when a product is produced in the country and sold abroad. Import- when a product is produced in another country (abroad) and sold domestically. Total amount consumed- sum of all produced, imported and exported.

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