Econ 101: Comparative Advantage versus Absolute Advantage

In economics, comparative advantage means you can produce something for the lowest cost. Absolute advantage means you produce the best product. It helps to know that what it costs someone to produce something is the opportunity cost—the value of what is given up.

But basically what you have here is a good example of the economists taking two incredibly simple concepts and messing them up so badly that nobody (in their right mind) can understand what they are talking about. I sometimes nowadays find help on You Tube.

In this case, I think any one of the following will do quite nicely:

http://www.youtube.com/watch?v=VVp8UGjECt4

http://www.youtube.com/watch?v=Z3xd8bXlzeU

http://www.youtube.com/watch?v=qSk-ugSizY4