On a graph of income verses age, the y intercept is your income when you’re 0.
The slope of a line at its maximum is 0.
You have the comparative advantage over Bill Gates. You don’t have anything to lose by
mowing lawns rather than making computer programs
Bill Gates should only be making computer programs, you should only be mowing lawns.
2 goods → animals hunted / cheese
You have the comparative advantage against the other guy in animals killed.
The other guy has the comparative advantage against you in cheese making.
Deal: You spend 100% of your time on animals, he spends 100% of his time on cheese
Trade 50 / 50
Questions for thought i.e. poss test ?s
1. What if the other guy had the absolute advantage in both goods? Trade still
2. Could either individual have the comparative