5 comparative advantage HACKS you need to know

Jacob Clifford explains key economics concepts, focusing on comparative advantage. He provides five hacks to help students understand and calculate comparative advantage, distinguish between output and input questions, and determine terms of trade. The video also introduces a quick method to identify comparative advantage without complex calculations.

What is the main challenge students face in learning about trade in economics?

• Learning about economic systems

• Calculating production possibilities

• Identifying comparative advantage

• Understanding scarcity

In an output question, what do higher numbers indicate?

• Fewer goods produced

• Less time taken

• More resources used

• More goods produced

What does the acronym OOO stand for in output questions?

• Output Over Others

• Other Over Output

• Other Goes Over

• Output Goes Over

How do you determine who has a comparative advantage in a 50/50 scenario?

• By choosing the lower opportunity cost

• By choosing the higher opportunity cost

• By guessing randomly

• By calculating absolute advantage

What is the key concept behind finding terms of trade?

• Trading without any cost

• Trading at a lower opportunity cost

• Trading at a higher opportunity cost

• Trading with equal opportunity cost

In the quick and dirty method, what operation is used to determine comparative advantage?

• Addition

• Division

• Multiplication

• Subtraction

When using the quick and dirty method for input questions, what should you choose?

• The lower number

• The equal number

• The higher number

• The average number