Comparative Advantages: Comparative Contrasgth And Strengths Of Economic Concepts?

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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…
They have certain strengths and weaknesses that define their character, but it how they use both their strengths and weaknesses to their advantage is what determines their true nature. Similar to people, economics works in a related fashion . One person could grow 30 apples and 10 pears in their stretch of land and be very successful with it. A second grower could grow 22 apples and 8 pears in their garden. Now, just because grower one makes more product does not instantly mean that he or she is more efficient. That is determined when what is gained is compared to what is lost. No one in the world has unlimited resources, so in order to have the opportunity to eat and enjoy pears the grower must sacrifice a number of apples and vise versa. In this case, if grower one were to make only apples he could have 100 apples or if he made only grew pears he would have 33 pears. Therefore, it would cost him 3 apples to have a pear and ⅓ pears to have an apple. If the second grower only grew apples or pears he could have 51 apples or 24 ½ pears. Making his opportunity cost for apples 2 and for pears 1/2. So while grower two makes less product he has a comparative advantage over grower one for apples and grower one has a comparative advantage over grower two on pears. Therefore, by calculating the opportunity cost of both of the fruit for both growers, one can determine which product that particular grower has a competitive advantage over and the …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

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