Introduction to Economics
Essay title: Introduction to Economics
Does either person have an absolute advantage in producing both products? Should these two planners be self-sufficient (each producing statements and answering phones) or specialize?
Absolute advantage: The ability of a country, individual, company, or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.
A country has an absolute advantage economically over another when it can produce something more cheaply. This term is often used to differentiate between comparative advantage
Phil can produce one financial statement while Francis can produce 3 statements. Phil can answer 10 phone calls while Francis can answer 12. Francis has the absolute advantage over Phil.
Self Sufficient people under a market system guided by the prices of products and resources make better decisions. If it is sensible for a person to produce the product for which he has an advantage, it is a lower opportunity cost than another person.
Self Sufficient people are able to provide for oneself without the help of others; able to provide for your own needs independent, having undue confidence, and smug. refers to the state of not requiring any outside aid,