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Ch 2: Comparative Advantage, Specialization and Exchange

About This Chapter

Watch economics video lessons to learn about such concepts as specialization, comparative advantage and absolute advantage. Each lesson is accompanied by a short multiple-choice quiz you can use to check your understanding of these topics.

Comparative Advantage, Specialization and Exchange

Sometimes in order to boost sales and get the most from the market, businesses must use certain strategies and play economic cards that will make things turn out in their favor. However, if business owners aren't aware of such things, they can become lost in the shuffle and their businesses will suffer. In these lessons, you'll learn about concepts that will give you an edge and allow you to understand how to best use your economic knowledge in business.

The lessons will teach you about specialization in relation to opportunity cost. You'll learn how to make the most of limited resources to produce the best results. As you watch our videos, see how opportunity cost, trade and specialization all come together to benefit you the most.

Through examples, our lessons on comparative advantage will help you to understand the definition and real world use of this concept. You'll study how businesses make crucial decisions about products and services based upon production abilities and material availability.

Lessons will move into talk of specialization and trade. See how gains can be made from trade and how specialization can bring major benefits in business. Study how specialization and trade is beneficial for everyone.

Do you know about the economic principle of absolute advantage? After watching our video lessons, you will know what it is and how it is applied in the market. Study examples to see how gaining an absolute advantage is achieved and the way it gives businesses an advantage over the competition. Thanks for watching!

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