Unit 5: Economic Exchange
In the fifth unit we discuss the concept of trade, and the economic rationale for engaging in trade. We discuss the concepts of absolute advantage and comparative advantage, and the benefits from specialization and the division of labor. We conclude this unit by discussing the important concept of the extent of the market, and why the larger the market, the more opportunities for mutually-beneficial exchange exist.
Completing this unit should take you approximately 3 hours.
5.1: Trade Lecture
5.2: Trade Discussion
5.3: Trade Review