Class 22: Comparative advantages

Today, Mr Rizzo gives us the lecture on comparative advantages by using multiple examples and calculation. An absolute advantage in producing everything doesn't mean that you have comparative advantages in everything. Therefore, we can say that whoever sacrifices less in making another thing as compared to the others are also having a higher comparative advantage because they are more efficient. As we realize the importance of comparative advantages we can be specialized and conduct trade, that's when wealth comes in because "self sufficiency is the road to poverty."