BADM 2003W Lecture Notes - Lecture 14: Bryce Harper, Calibration, Deadweight Loss
11 Apr 2016
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Presidential candidates and their opinions regarding trade. California and their experiments with minimum wage. Lower demand for labor thus decreasing jobs. Absolute advantage is easy one party is better at a particular task than another. Bryce harper, like many other good athletes, was better than most people in other sports as well football and basketball. Likely an absolute advantage in 3 sports. Being able to produce more with the same resources. A greater gap between him and the average player in baseball than in other sports. Opportunity cost of playing another sport is giving up baseball, and it is high. Specialization results from comparative advantage then trade. Increases output for both countries for both goods too. Possibilities increase allowing consumption to follow suit. With specialization in effect, concentration of resources go up. Level of employment is a macroeconomic phenomenon not affected by presence or absence of trade. Domestic price equals world price (if lower)
