Comparative Advantage and Trade - Macro Topic 1.3 (Micro Topic 1.4)

[@JacobAClifford]

The answer key is below. Just click on "Read more." Please let me know how you did. Your rock! Answers 1.D 2.D 3.B 4. D (this is an input question)

[@jasminemian1096]

I think Sam does have the comparative and absolute advantage in raking, but that wasn't an option.

[@nottherealben]

@@jasminemian1096 Yes, it's not an option

[@saketsachinnaik9247]

Isn't last e

[@lohitmurali2137]

@@saketsachinnaik9247 Na man, its D. We are looking at inputs, not outputs. Take the first box for Brazil for example. We have 12 hours to make coffee in brazil yet it takes 4 hours to produce wheat. If we produced coffee, we would lose 3 units of wheat. This is because if we spent our time making wheat, where it takes 4 hours to produce 1 unit, we would make 3 units. The way we have look at this problem is how much we are giving up. If we are giving up more, we do not have the comparative advantage. To produce 1 unit of coffee, we lose 3 units of wheat. Therefore the ratio of the boxes after doing this steps are Brazil (1:3 , 1:1/3) and Peru (1:3/2, 1:2/3). From this we know that Peru has comparative advantage in producing coffee due to a lower opportunity cost, and Brazil has a comparative advantage in producing wheat due to a lower opportunity cost. The only option that makes sense is D. It is not E, because you looked at it from an output perspective.

[@saketsachinnaik9247]

@@lohitmurali2137 yes

[@nashboykin5356]

Last minute studying for AP's tmrw and thursday; good luck everyone.

[@CounterBalance567]

ภครђ ๒๏ץкเภ same man. But for me I suck at macro so I decided to watch the whole thing again.

[@Shubham.Katyal]

Thx. Good luck 2 u too

[@justinwahby]

what did you get?

[@evansmith1682]

Mr Clifford, your videos and review packet helped me get a 5 on ap micro, something I never thought I could. Thank you!

[@JacobAClifford]

Thank you for watching.

[@D.ar369]

which did you watch

[@DakshPHB]

Earlier i used to fear economics due to complex terminology .but u teach economics in the most interesting way possible.Thank you from india🙏

[@lexcyrose5376]

I got 5 on both my micro and macro!! I'm so glad I bought your review packet. Thank you thank you thank you!!

[@sacapuntasfregerio4274]

you got 5 what?

[@fredro_05]

@@sacapuntasfregerio4274 The AP exams are graded 1-5 I’m pretty sure

[@sacapuntasfregerio4274]

@@fredro_05 oooh

[@so_obsessed_]

I took AP macro last semester and the teacher barely taught anything! I never understood anything and struggled so much. I was really nervous to start studying for the AP exam but these videos are so helpful and now I'm learning more than I ever did when I was in the class! Thank you so much.

[@michaellongstaff3588]

Not sure if you’ll see this but thanks for your stuff. Yesterday was a level results day in the UK and I got my A in econ so thanks for the revision materials you’ve produced over the years.

[@JacobAClifford]

I read every comment. I'm glad I was able to help you. You rock! Jacob

[@chickychristmas4865]

I'm watching these and studying for my Econ final singing my own Christmas carols, buck-buck-be-gawk! I can't wait for break.

[@roulaelhadidy1818]

hahah same!

[@aviarora69]

Kia ora Jacob, Just would like to thank you for posting all these Econ videos, I have learnt lot and used your explanation to write my assessments in which I got good marks. Once again, thank you so much.

[@GustavoSilva-ny8jc]

The fact Thor gave the hammer dismissing as "little one" and that they can just switch around is AWEEEEESOME 😂😂😂, that's excellent writing.

[@Vikermajit]

Awesome explanations; awesome examples; awesome sense of humour; awesome tutoring skills = awesome channel. Thanks for making econs. fun and comprehensible.

[@sahilgagvani3350]

It was because of your Ultimate Review Packet that I got a 5 on my AP micro

[@zeinab7011]

Sir ,thank you so much for teaching us econ concepts so amazingly, your vedios helps us a lot!!!! Regards from srilanka!

[@gopinathbhat1789]

I got all of them. It's truly a great explainer! Thank you!!

[@timskoltsov7000]

what r the answers ?

[@rolandokattan9761]

this guy is the hero we dont deserve...

[@carolinalourenco911]

Great Video! they always help a lot. Could you please do a video about lobbyism and its influence on trade policy?

[@JustAPerson-sw5gk]

never thought i wouldnt get bored studying but here i am studying for a micro macro test i have next week actually being distracted by what im studying

[@edely7497]

1.D 2.D 3.B 4.D

[@hunterhobbs4374]

I think number 4 was A. Peru could produce wheat for the same amount of labor hours as Brazil, but they lose less on the coffee side of things than Brazil. Brazil makes 4 loses 12 on coffee. Peru makes 4 and only loses 6 on the coffee side. So, Peru has an advantage in wheat production when compared to Brazil. Who's with me?

[@kriszhao613]

@@hunterhobbs4374 ye i think it is a

[@sneeky7937]

@@hunterhobbs4374 If you look at it in terms of fractions, it takes Brazil 4 hours to make wheat and 12 hours to make coffee. As a fraction, this would be 1:3; 1 hour for wheat, 3 hours for coffee. Whereas Peru takes 4 hours to make wheat and 6 hours to make coffee, which would be 2:3. Therefore, Brazil has the comparative advantage in making wheat, and if you flip the numbers, Peru has the comparative advantage in making coffee (*whoever has the smaller fraction has the comparative advantage since we're dealing with an input question).

[@natalieyam1494]

Jacob Clifford 2 years ago The answer key is below. Just click on "Read more." Please let me know how you did. Your rock! Answers 1.D 2.D 3.B 4. D (this is an input question)

[@masellomasalane3635]

Thank you Mr Clifford. Your Videos are really helpful.

[@GustavoSilva-ny8jc]

2:50 Paulastan and Israecob

[@MA-rc2eo]

Please make video about compartive advantage with input.

[@pavlosakharov3837]

Hi. just wanna say - good job! Keep it up!

[@bowenzheng1691]

Mr. Clifford. Our professor said that the crowding out effect will cause the supply of the LF decrease. I'm so confused :(

[@hatimessaleh9420]

All the way from morocco , Sir u rock

[@GustavoSilva-ny8jc]

1:00 THAT'S AMAZING

[@SourceCodeDeleted]

I wonder if they can make a board game like this for economics. And I am not talking about monopoly.

[@arion9696]

Bruh

[@ericcarson342]

Haha. Trade makes everybody better off. About the only thing economists can agree on. So true. Great videos.

[@williamwilkins1222]

I love your videos Jacob!!

[@colin.reinhart]

Couldn’t decide if number 3 is A or B. How is B correct?

[@nashboykin5356]

lol just slightly late; you could do the math but when you look at comparative adv. Country B produces steel under specialization, so A can't be correct.

[@anand9405]

U r simplyyyyy amazing.. Regards from India

[@gertrude-mng]

where can we see the answer ?

[@nootnootah]

Had to do some scrolling because it was not pinned 1.D 2.D 3.B 4. D (this is an input question)

[@christinajaramillo6108]

BOSS. Thanks AC/DC man.

[@fardeenshamsab4254]

Great video Mr Clifford 🇦🇫

[@Nikita-zf5id]

Kyle McDonald - Speech 100

[@tareqel-khader9161]

Best teacher!

[@lorra2648]

I don't know if I'm making any sense but do you think money will lose value in the future and instead people will just trade things?

[@genezhang4849]

in the past, people only trade goods. money wasn't invented until later. using currency has the advantage of easy carrying and various other advantages.

[@soumyadeeproy6506]

Each country can consume beyond is constraints of resources and productivity.

[@JacobAClifford]

Yes.

[@minakshikumar4532]

Love your videos absolutely great.

[@kitlamb5994]

You're a legend.

[@solomiiakachur8030]

I'm studying for AP with the Ultimate review packet and I think there is a mistake in Topic 1.3 question 8. Can you please review and let me know if I'm wrong. Thank you for all the effort you put into this!!!

[@JacobAClifford]

The key is correct. That is an INPUT question. Notice how it is talking about "hours".

[@solomiiakachur8030]

@@JacobAClifford Oh I see, thank you !!!

[@gulhayoraxmonova3460]

you are amazing and funny😅 I liked paulastan and jacobland more🤣🤣

[@yahyamotara7590]

5:57 Jacobstan

[@leviduffey9556]

Ah, this reminds of the quick and dirty.

[@andresmamafoundation6400]

lol

[@saketsachinnaik9247]

DDBE correct

[@afrozjahandristi7699]

can you please tell us some criticisms of comparative advantage?

[@juanc.3765]

The problem of the theory of comparative advantage is its assumptions: it assumes that there is perfect competition (businesses have no power to manipulate prices) and there are no externalities (a situation where the cost or the benefit to produce or consume something is not reflected on its market price). In reality, we find imperfect competition and externalities, so it might not fit reality quite well.

[@user-ge4qu6dp4w]

Thanks

[@elifulgium2714]

where are the answers?

[@Sharrrk730]

Same. Did you find them?😢

[@kellenrossiter5069]

Thanks, man

[@ajitkhanal507]

How can two countries with same amount of resources have different Production Possibility Curve?

[@zanetruesdale6801]

their workers might not be specialized in those fields or work nearly as efficient

[@ajitkhanal507]

@@zanetruesdale6801 are workers not considered as resources??

[@sadmansakib569]

not skilled enough workers

[@Arasaka107]

where he made those trade? xD like who gives a door knop for a pen?

[@bishalpanthi3897]

Sir Where are answers

[@nootnootah]

Had to do some scrolling because it was not pinned 1.D 2.D 3.B 4. D (this is an input question)

[@angelhou2600]

1. D 2. D 3. E 4. A & E

[@lailam7026]

we just learned this concept in my Ap Econ class and I was completely lost in class. this video explained in 30 seconds what my teacher couldn’t in an hour. Thank you so so so much 🥹

[@glennwatson3313]

Good job but a bit on the longer side for your videos. I really like the M/C questions at the end.

[@ppowerstation3547]

what is the answer

[@nootnootah]

Had to do some scrolling because it was not pinned 1.D 2.D 3.B 4. D (this is an input question)

[@hassantalib2911]

love it

[@mehullad2383]

So basically if jim didn’t rip off dwight schrute in The Office

[@makisekurisu8594]

MAGIC BEANS

[@senya1696]

the video is cool

[@longviewmuscle5508]

lol still cant find this stupid answer key

[@joemaslyk1877]

I think it’s D

[@giulias7017]

DID YOU FIND IT EVER

[@noahfinn1104]

@@evelynnabil4064three is B 😊

[@noahfinn1104]

@@evelynnabil40644 is D

[@ahmetbakisenayl3950]

D D B D

[@Shaheer7X]

Still dont get terms of trade

[@saketsachinnaik9247]

Where are answers sir @jacob

[@nootnootah]

Had to do some scrolling because it was not pinned 1.D 2.D 3.B 4. D (this is an input question)

[@mariahlecce3348]

Where can I find the review packet?

[@r.s.j.studios]

Answer is D right

[@MichelleNjonge]

cant find the answers

[@nootnootah]

Had to do some scrolling because it was not pinned 1.D 2.D 3.B 4. D (this is an input question)

[@antisocialbarbie1587]

Man your getting old I was just going through your 2016 vid 😭

[@nootnootah]

hello from 2024 lol

[@yahyamotara7590]

Wait... So if you made one extra car... You would have two thirds of a plane?? Jeez, this sounds almost as safe as Boeing 737 (A crash every ~500 000 hours)

[@cyrussuleman1982]

8:30

[@JasonGlenn80]

guess you won't be making very many hats then...

[@Yosowa_toeskol]

After I watched your VIDEO. Why do make me more confused about the economic.

[@thehungryminer700]

Who is here before a quiz?

[@yahyamotara7590]

Aaanyone wanna trade a paperclip for a pen???

[@nureenaresya9000]

my test is in less than half an hour lol

[@sonaljain3208]

who is here i quarantine

[@JC-sh6ur]

db

[@yahyamotara7590]

1:53 Mr. Jacob is a country???

[@user-tg9qv9qq3h]

pualastan sounds like palestine

[@riidiary310]

E,

[@irockout9112]

d,d,b,d

[@Stoicayush]

Bro how can the last one be d?

[@kaiqiqin2426]

it's an input question; thus, the last one ought to be d @@Stoicayush

[@myiex6320]

@@Stoicayushbecause wheat produced is the same as Brazil in the case of Peru, while coffee production is greater in Peru than in Brazil. Therefore, Peru must have a comparative advantage in coffee production because they produce more coffee for the same wheat. In other terms, Peru has to give up 1.5 units of coffee for 1 unit of wheat. Whereas Brazil has to give up 3 units of coffee for 1 unit of wheat. Therefore, Peru has a comparative advantage in the production of coffee.

[@ambrosetaylor9576]

where are the answers:(

[@nootnootah]

Had to do some scrolling because it was not pinned 1.D 2.D 3.B 4. D (this is an input question)