AB 204 Week 2 Discussion 1 | Assignment Help | Kaplan University
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- 21 Aug 2018
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AB 204 Week 2 Discussion 1 | Assignment Help | Kaplan University
Unit 2 Discussion Topic 1
Basic Economic Models and Comparative Advantage
The Discussion topics include the difference
between microeconomics and macroeconomics, the two basic economic models of the
Circular-Flow Diagram and the Production Possibility Frontier, and comparative
advantage, which is the main force behind interdependence in the market economy
and the gains from trade.
Read Chapters 2 and 3, and remember to include
references and links to the websites that are important contributors to your
posts.
The theory of comparative advantage states that
there are gains from trade if countries specialize and optimize their
opportunity costs.
a.
Why is comparative advantage a driving force behind
trade behind trade between regions and countries?
b. Why does specialization lead to welfare
improvement? Why engaging in trade is better than trying to be self-sufficient?
USA 
India
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