Anyone concerned with the comments saying this is wrong shouldn't worry, it's not. However it should be noted that the model he uses works with hours needed to make x good. On the other hand the model I was taught, and the model in my textbook, works with the maximum potential output of each good if all resources are fully employed. If you used the numbers in the video with that model, then yes, the UK would have absolute advantage on both goods and the comparative advantage on cars.
+WSC9293 why do you need someone to hold your hand? Read your text. Use your own brain. quit blaming others for your poor reading comprehension skills.
parteibonza Did I say I needed someone "to hold my hand", you stupid fuck? When my textbook (which you've never seen) doesn't explain this at all, what shall I do then? Go fuck yourself, loser.
parteibonza Well since I already passed the course with a grade of 100% back when it ended in April, I'd say you can choke on your words, fuckwad. Oh, and my overall college average is in the high 90s. I do quite well in my studies and professors appreciate my questions. Insecure, whiny bitches like you, on the other hand...
To everyone complaining: It's just with hours needed instead of amount of output, so larger numbers means less effectiveness. People in the comment really scare me, how can they not grasp the idea. Video is really useful and simple to understand.
Thank you so very much!! You taught me this theory better than the teacher in my college did. This helped me alot. youtube will probably save me from flunking economics this semester, thanks to people like you
Taught much better than teacher at college. It's funny how we often have your videos played during our lessons since you seem to teach all this better than anyone else :-)
Of course this video is still benefiting people! It's already 2017.Thank you for uploading this video to illuminate me and get the key point in my Economics class!
Those of you saying this video is wrong: UK: Make 1 car = give up 3 cheese. To make 1 cheese, you give up 1/3 of a car. China: Make 1 car = give up 2 cheese. To make 1 cheese, you give up 1/2 a car. The UK has to give up a whole three cheeses to make 1 car, whereas China only gives up two. That means that it makes sense for Britain to get its cars from China, because China doesn't have to give up as much cheese to produce a car. Conversely, it makes more sense for China to get its cheese from the UK, since they only give up 1/3 of a car, whereas China has to give up 1/2 a car to get 1 cheese.
I absolutely concur with your argument. If making a car takes three times longer than a tonne of cheese, then the opportunity cost of every car should be three times a tonne of cheese, i.e, O.C of 1 car = 3 tonnes of cheese-the case for America. The same logic can be applied for China. Thus, the following deductions can be made 1. America (O.C 1 car= 3 tonnes of cheese) vs. China (O.C 1 car=2 tonnes of cheese). Therefore, China has a comparative advantage in the production of cars since it forgoes less in terms of cheese relative to America. 2.America (O.C 1 tonne of cheese = 0.33 of a car) vs. China (O.C 1 tonne of = 0.5 of a car). Therefore, America has a comparative advantage in the production of cheese since it forgoes less in terms of cars relative to China.
So, so useful! Whenever I miss/don't understand something I check if you've done it! It's very rare that I'll watch one of these videos and still not understand a concept! Thank you!
Brilliant! I struggled with both my textbook and professor's notes, but after watching this I get the idea, and could make up my own examples. THANK YOU!
Thankyou sir for the amazing explanation of the topic in just 7mins. I have been spending hours finding the right explanation of the same. This vedio solved my problem!
this guy is the best.... thanks so much... you help me continue with my revision... this chapter was a little but confusing for me.... but this video helped me...
Excellent.... comparative advantage was melting my brain a little.... my text book didnt mention opportunity cost at alll... but mentioning it makes so much sense.
@Kaboose786 that's right - so 3 cheeses/1 car. Both [3 cheeses] or [1 car] can be made with 15 hours. Thus the cost of a car is not having three cheeses.
Wow, within a minute of this video you've been able to explain to me something i've been struggling to get my head around for a few days now. Thanks very much man and keep it up! :)
that was very clear, took a while to understand it from my economic's teacher's perspective, and was still sort of fuzzy, thank you for using the example of hours, and not just production units!
thank you so much ! Your video is so helpful ! Thank you for uploading it ! You explain much better than my prof ! Once again, thank you for your video !
thank you so much it helps me in my exams . please continue making such videos they are extremely helpful.I am not native speaker and you speak very clear 😊
lovely explaination..... i wish my economics teacher had the skill to explain such 'complicated' stuff in such easy manner.... :):) thank you soo much phil :):)
You spent less time explaining this and i understood it more than when I spent 3 hours in class trying to understand.
I agree.
I agree, as well! Paj is a natural
Over 250,000 students have the same example of UK, China, cars and cheese in their exam.
8 years after this video was made, I am going to use it as well.
Omg me too xD
Hahaha
Hahahaha (now 450,000)
12 years after...... I will use the same 😆. I couldn't find any helpful video relevant to calculations. Hope he is good at it. Started listening
Anyone concerned with the comments saying this is wrong shouldn't worry, it's not. However it should be noted that the model he uses works with hours needed to make x good. On the other hand the model I was taught, and the model in my textbook, works with the maximum potential output of each good if all resources are fully employed. If you used the numbers in the video with that model, then yes, the UK would have absolute advantage on both goods and the comparative advantage on cars.
Well explained, much better than my economics teacher :)
+Eva Greta Much better explanation than my useless tit of a professor, too.
+WSC9293 why do you need someone to hold your hand? Read your text. Use your own brain. quit blaming others for your poor reading comprehension skills.
parteibonza
Did I say I needed someone "to hold my hand", you stupid fuck? When my textbook (which you've never seen) doesn't explain this at all, what shall I do then? Go fuck yourself, loser.
parteibonza
Well since I already passed the course with a grade of 100% back when it ended in April, I'd say you can choke on your words, fuckwad. Oh, and my overall college average is in the high 90s. I do quite well in my studies and professors appreciate my questions. Insecure, whiny bitches like you, on the other hand...
thank you so much, its almost 2016, and this video is still benefiting people! Good job!
+Omar El Nakkadi it is 2016 now , and i am benefiting from it :p
it is really helpful !
+Omar El Nakkadi four months though 2016 and verrryyyyy useful
+Ahmed jama A day before the exam and it's still very useful... Last minute revision again...
2017, still useful :)
Omar El Nakkadi
2018 still going
To everyone complaining: It's just with hours needed instead of amount of output, so larger numbers means less effectiveness. People in the comment really scare me, how can they not grasp the idea. Video is really useful and simple to understand.
5 years ago I came to watch this video to learn about this concept for my IB exams.. 5 years later back again to learn the same... Hats off to you!
Kazi Ahmed Wow refreshing to see another IB students! I am sitting for them on November, 15 years later.
Thank you so very much!! You taught me this theory better than the teacher in my college did. This helped me alot. youtube will probably save me from flunking economics this semester, thanks to people like you
girl me too, i have a quiz tomorrow and didn't know shit until i started doing research on my own.
i got an exam 8:30am tommorrow so in the same position. only started learning shit after watching youtube videos today.
10 years later and still helpful in simple terms. Thank You!
Thank you Mr. Holden for the clear and easy to follow explanation. Seven minutes well spent.
June 2018, glad i found this. Much better than the lecturer i met in class. Thanks!
Taught much better than teacher at college. It's funny how we often have your videos played during our lessons since you seem to teach all this better than anyone else :-)
Of course this video is still benefiting people! It's already 2017.Thank you for uploading this video to illuminate me and get the key point in my Economics class!
I don't know if you understand how much this has helped! What you taught in 7 mins. Was way better than my teacher for 2 weeks! Thanks!
Those of you saying this video is wrong:
UK:
Make 1 car = give up 3 cheese.
To make 1 cheese, you give up 1/3 of a car.
China:
Make 1 car = give up 2 cheese.
To make 1 cheese, you give up 1/2 a car.
The UK has to give up a whole three cheeses to make 1 car, whereas China only gives up two. That means that it makes sense for Britain to get its cars from China, because China doesn't have to give up as much cheese to produce a car.
Conversely, it makes more sense for China to get its cheese from the UK, since they only give up 1/3 of a car, whereas China has to give up 1/2 a car to get 1 cheese.
absolutely right :)
I absolutely concur with your argument. If making a car takes three times longer than a tonne of cheese, then the opportunity cost of every car should be three times a tonne of cheese, i.e, O.C of 1 car = 3 tonnes of cheese-the case for America. The same logic can be applied for China. Thus, the following deductions can be made
1. America (O.C 1 car= 3 tonnes of cheese) vs. China (O.C 1 car=2 tonnes of cheese). Therefore, China has a comparative advantage in the production of cars since it forgoes less in terms of cheese relative to America.
2.America (O.C 1 tonne of cheese = 0.33 of a car) vs. China (O.C 1 tonne of = 0.5 of a car). Therefore, America has a comparative advantage in the production of cheese since it forgoes less in terms of cars relative to China.
Sorry its UK not America.
So, so useful! Whenever I miss/don't understand something I check if you've done it! It's very rare that I'll watch one of these videos and still not understand a concept! Thank you!
Some people are gifted communicators. This guy is one of them.
Brilliant! I struggled with both my textbook and professor's notes, but after watching this I get the idea, and could make up my own examples. THANK YOU!
Brilliant, explained simply for non-experts. THANK YOU, this has really helped me understand these two terms
Mr. Holden, I greatly thank you for explaining this with such simplicity! I understand the true benefit is OC.
You are one of the only people on youtube I have found that actually teaches this right. Many thanks, continue teaching O wise one :)
Thank you very, very much! Every time I watch your videos, i seem to understand better! Thank you, and keep doing that and helping people out!
Mid 2017 and this video is still SUPER helpful!!
I am doing a unit on global political economy. This is fantastic, simple examples that can be applied to complex real world trade. Thanks soo much.
£9000 a year for university when all we need is this g. Man like paj holden soon touch road
What uni do you go?
thank you so much, this short lecture gave me a better understanding than all the text I can read or questions I can ask my professor!
Absolutely love this. So well explained, yet simplified so we can understand. Thank you.
Thankyou sir for the amazing explanation of the topic in just 7mins. I have been spending hours finding the right explanation of the same. This vedio solved my problem!
Thank u awesome British man! I am going to take my midterm with some level of dignity! You are the patrick JMT of Economics!
Thank you so much! I'm taking Intro to Macroeconomics online and this example was so helpful to actually SEE in progress.
Your lectures and your methodology is highly respected.
Excellent, quick and easy! Visual help always helps rather than reading a page full of numbers in the the text book.
YOU ARE AMAZZINGG!! IM IN MACROECONOMICS NOW AND I WAS STRUGGLING REALLY BAD AND U REALLY HELPED ME!!!
Thanks for this video!! So relieved to know how to calculate the opportunity cost efficiently and with success every time!!
Great lecture !! Totally makes sense. I had a hard time to understand comparative advantage, but this guy make it clear. Thanx alot.
Makes ALOT more sense than it did at school last week.... THANK YOU!!!!
this guy is the best.... thanks so much... you help me continue with my revision... this chapter was a little but confusing for me.... but this video helped me...
thank you so much..... it takes one lesson video on YOU TUBE for me to understand this. Much appreciated.
best and simple lecture........for the absolute and comparative advantage
Someone give this man a award!
Exams tomorrow and you just cleared my doubts on absolute and comparative advantage. Thank you very much.
My economic teacher is using your videos as teaching materials.
And thanks for the lessons.
Thank you. You explained this very well and it was easy to understand. Much easier than my book.
videos like these really make a difference. Great lesson. teaching takes talent.
i just did my IB economic exam thank u for ur videos they were a great help
Thanks for simplifying and explaining comparative and absolute advantage! So helpful
thank you! I previously found this concept so difficult! this video simplifies it a lot!!!!
You are the boss! Struggled so long with this comp.adv thanks a lot!
This video is great. It has really helped me understand our lesson in Econs recently. You're such an excellent teacher! Confusions were gone now! :)
That was perfect. You couldn't have explained it any better... Now I can face my test with confidence.
Excellent.... comparative advantage was melting my brain a little.... my text book didnt mention opportunity cost at alll... but mentioning it makes so much sense.
I've consulted my teacher, wikipedia and the fancy school book and did not comprende...2 min with this guy made my night (not sexually) =) cheers
This was the best explanation, thank you so much! It really helped.
This is great. Very clear and straight to point.
My international Economics exam is tomorrow and you have just saved me
THANK YOU! :D
thank you so much. you have a genius way to make economics as easy as a cake.
WOW thank you so much! You just helped a freshman college student understand how to find the Absolute Advantage :D
Thanks a lot. Helps a lot for my AP microeconomics class.
Thank you so much.. I really enjoy your videos .. they are simple and on target.... Cheers from Argentina
extremely helpful and a simple explanation in less than 10 minutes.
@Kaboose786 that's right - so 3 cheeses/1 car. Both [3 cheeses] or [1 car] can be made with 15 hours. Thus the cost of a car is not having three cheeses.
Sir you have just saved my academic life!
I love you sir! You've helped me countless times with outstanding examples.
Thank you for that!! My International Business class explanation left something to be desired. I understand it now!!!
This was so simple the way you explained it. Thank you, thank you, thank you!
thank you for your good explanation, really helped me out. and for sure is better than my lecturer's explaination
this guy is a legend! Thanks for the clarity!!!
You did a great job, this was extremely helpful.
Please please never stop making you tube videos. They help me SO much you have no idea
You explained that perfectly thank you. ;) Much better than my social sciences teacher!
Thank you so much for making this. You saved me from submitting my homework with the wrong answers tomorrow.
+normanozwald FUNNY
Wow, within a minute of this video you've been able to explain to me something i've been struggling to get my head around for a few days now. Thanks very much man and keep it up! :)
Thank you soo much :) it was really easy to understand! Greetings from Prague
that was very clear, took a while to understand it from my economic's teacher's perspective, and was still sort of fuzzy, thank you for using the example of hours, and not just production units!
thank you so much ! Your video is so helpful ! Thank you for uploading it ! You explain much better than my prof ! Once again, thank you for your video !
thank you so much it helps me in my exams . please continue making such videos they are extremely helpful.I am not native speaker and you speak very clear 😊
Thank you! You explain it much better than my professor.
DUDE.
you are awesome. this is so easy to understand after you've explained it.
awesome stuff.
keep making vids please.
lovely explaination.....
i wish my economics teacher had the skill to explain such 'complicated' stuff in such easy manner.... :):)
thank you soo much phil :):)
I love you. Got a nice microeconomics exam tomorrow.
thank you!
your explanations were clear and simple. same for your examples.
Sir, you just saved my life. thank you for this video
Thank you very much Phil, I really appreciate this great presentation.
beautiful and clear explanation with an example... thank you
That was immensely helpful. Very concise and engaging explanations you have there. Keep it up! I'd love to learn more from this channel.
Your app is brilliant and just saved my arse on an essay. THANK YOU!
Why can't you be my economics teacher?
Phil Holden = economics legend! Thank you for these, it making my degree so much easier :)
Oh my god, I wish I would have watched this 2years ago when I took economics. Thanks!!
Thanks, the table makes move visual sense than some other videos.
Thank you.
Your videos mean I have some hope of getting an A in econ :)
A simple world. Thanks for explaining!
Thnaks I needed this for an exam in a few minutes.
humongous wot
btw, very concise and clear, thanks!
This video was very helpful for me.thank you very much
Thnx, i needed that, was a bit confused in my international trade class. Thanks
Thank you for this video! Very helpful for me.
This is the best explanation ever. thanks man!
Quality Video, explains it clearly and much better than my Economics teacher!!!
Your teacher is probably just fine. You just need to listen better.
+parteibonza nah man
this is perfectly helpful, clean and clear explanation.