Economics

By: Dylan Reed

Benefits of Free Trade

  • Expanded Markets
  • Lower Cost of Production
  • Wider Pool of Talent
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The importance of Comparative,absolute advantage, and Opportunity Cost

Comparative advantage is important to production in an economy because it allows someone to produce more goods in what they specialize in while another makes up for what they don't, while Absolute Advantage represents a person's ability to specialize in producing more of multiple products. And opportunity cost is similar to that of the cost of labor, where the lower the opportunity cost, the better it is for production. These three concepts are very important to the economy.