Its been awhile since I have written. I have had lots of adventures, some that I have shared and others that I have not. Two semesters ago, I wrote concerning a class that I had. And hey I figured this was as good a place as any to share more thoughts.
This semester I am taking Introduction to Macro Economics. I have taken it before, but needed a better grade. Hey we don’t always learn things the first time and I am certainly no exception to that rule. I work hard in school and I do put a lot of time in. But despite all the time I put in for school, this class was still hard and here I am again learning it all over again. But hopefully this time, I will understand it.
The class is 3 credits and the requirement is 9-12 hours of homework for at least a C. I always want an A. This is college work and the classes have been hard. I have had a couple of easier classes, but they are things I have excelled in. This is not my cup of tea, so I must sacrifice and work as hard as I can for the grades that I want.
So far I have read the chapter at least 2-3 times within the last week and done homework, a quiz and a hangout quiz. I am also working on extra credit and additional reading of the chapter and I finally had an a ha moment. So I thought I would share it with you.
Absolute advantage is an economic term that compares the quantity of inputs required to produce a good. So I can produce scarves or treat bags. But what can I do better and what should I specialize in? Absolute advantage is where we decide where I am most efficient and have the highest productivity. I have read that so many times, and it finally sunk in. Yay!
Comparative advantage compares the opportunity cost of production for each producer. There is math involved in this and many different equations. But due to a video a classmate shared with me today, and after watching it about 14 times, I was able to understand and put it to good use.
So back to comparative advantage…. Comparative advantage compares the lower opportunity cost of production for each producer. The interesting thing, is while I see the Absolute advantage someone has, it may not be the best way. They way be able to produce the other item at a lower cost- thus a comparative advantage.
I would say I don’t have a comparative advantage in doing homework. Ha Ha ha. It takes me hours. But I do have an absolute advantage in doing many other things.
Well that is probably all I will share today, but I will continue to think about the terms that I am learning in Economics and hope for more enlightenment.