Comparative Advantage Research Paper

Comparative Advantage Most people carry out economic concepts in their day to day lives without even noticing it. Comparative advantage is the economic principle in which a person provides a good for a lower opportunity cost than another person. Although it sounds confusing, this principle is applied by everyone from the small schoolhouse teacher to the big business C.E.O. In it’s simplest terms, comparative advantage is just being able to do something better or cheaper than someone else. So, students in a classroom attempt to have a comparative advantage over their peers or large cell phone companies seek a comparative advantage over the other carriers. In doing so, all of these people are trying to use their individual comparative advantages …show more content…
With it, is the power to create and the power to destroy. It all depends on how you view it. Just like wealth, technology can be subject to the same human variable of values and opinions. It is due to this that positive analysis would be better suited to boost wealth in the name of technology. Often people can get very worked up of about change and the concept of new which can cloud their judgement and avoid them from seeing the bigger picture. The Luddites, for example, reacted with riots at the new weaving machines, for they only cared about their jobs and how they would be able to provide family. An honest objection, however, they neglected to understand that the new weavers would provide other jobs in new fields such as shipping and factory management. In conjunction, the factory looms were able to produce a greater quantity of clothes for a far less price which enables people to purchase more clothes and in turn reduces environment-related deaths. Essentially, people’s personal bias often prevents them from seeing new and different technologies as a societal good due that the fact that it may alter their lives in someway. It is because of this that positive analysis serves as a far better method of promoting technology and generating wealth from it. Another more modern example of this phenomena is cell phones. A lot of people are up in arms about cell phones are destroying the youth of the world. However, this again is personal bias at work. Many positive aspects of cell phones that have been studied and proven are the ability to keep in touch and get in touch with people much easier and quicker. Who knows how many lives they have saved by being able to call first responders faster saving precious time that could be the matter between life and death. This has also been useful in business situations where people are able to keep up with busy schedules and clients and employee increasing productivity in many