Comparative advantage specialization and gains from trade | Microeconomics | Khan Academy

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  • Опубліковано 28 лис 2024

КОМЕНТАРІ • 122

  • @Cheems_on_Toast
    @Cheems_on_Toast 4 роки тому +570

    It's quite scary that these free resources are better at teaching than the lecturers that we pay thousands for

    • @fouadmajidi2568
      @fouadmajidi2568 3 роки тому +31

      I totally agree. I get scared when I attend five lectures and I understand nothing then I head to khan academy five videos I understand everything

    • @kalalukalubasi2737
      @kalalukalubasi2737 2 роки тому +1

      Same here!

    • @A21842
      @A21842 2 роки тому +15

      My Econ lecturer is the most boring and unprofessional in global education industry

    • @vlad_shark
      @vlad_shark Рік тому

      @@A21842 feel you, bro 😁

    • @TiaraDavis-k6h
      @TiaraDavis-k6h 10 місяців тому

      Same these concepts are more understandable than the courses I have taken in college.

  • @WoodT92
    @WoodT92 4 роки тому +76

    I’ve been binge watching your videos during this quarantine and I’ve learned so match. Thank you MR. Khan

  • @ItsMoe202
    @ItsMoe202 9 років тому +42

    Dude youtre amazing at explaining. I'm taking an online Macro course which I have to understand on my own. I found it a bit tricky because the given e-book doesn't really detail their explanations like you. Bravo!

  • @yerpyaboy
    @yerpyaboy 8 років тому +219

    how do you know everything ever.

    • @ThisWorldOfEpicness
      @ThisWorldOfEpicness 8 років тому +21

      This guy is a God

    • @mehmetaydin3103
      @mehmetaydin3103 5 років тому +2

      ThisWorldOfEpicness You need to read book more,God is a wrong choice to interpret your idea it could be “Wise of the 21st century “ have a nice day

    • @TragicHamad
      @TragicHamad 4 роки тому +9

      @@mehmetaydin3103 Don't take that comment too seriously. It's the internet, so it must be a joke.

    • @winnieb3324
      @winnieb3324 4 роки тому

      Right lmao

    • @senak9000
      @senak9000 3 роки тому +1

      @@mehmetaydin3103 as ppl say god knows everything, this person wanted to mean that khan academy's person knows everything and is the god. have a n*ce day.

  • @aaronlosing
    @aaronlosing 13 років тому +14

    Just finished two semester of micro then macro econ. Good stuff, Sal.

  • @guitarguy5
    @guitarguy5 5 років тому +21

    Thanks for putting this up here.... One day when I have some extra cash, I am definitely going send a donation to Khan Academy!

  • @bershkasen9245
    @bershkasen9245 10 років тому +42

    you are awesome.... so clear and funny as well. It is a pleasure to learn from you. I go to a leading business school (top 3) for MBA. The MBA costs > USD 100,000 But our teachers suck. THE BEST THINGS IN LIFE ARE FREE :)

    • @Justin-ev8nn
      @Justin-ev8nn 5 років тому +2

      Don’t you go to business school for the clout and networking? Education is not the priority for a lot of business students.

    • @jayzee2634
      @jayzee2634 5 років тому +1

      Justin especially for MBA, our profs think they’re a bunch of stuck up snobs for some reason haha

    • @suprabathreddy980
      @suprabathreddy980 4 роки тому +1

      sal khan went to hbs

  • @shreenidhi960
    @shreenidhi960 Рік тому +1

    U tube saves thousands of money😊😊

  • @austinjackson8110
    @austinjackson8110 10 років тому +75

    He needs to do this with not so nice numbers

    • @fudhujanta
      @fudhujanta 7 років тому +2

      thas what im sayinnn

    • @gordonfreeman694
      @gordonfreeman694 7 років тому +36

      he uses nice numbers to not brainfuck people with numbers and teach the logic. once you learn the logic you will care about numbers no more

    • @opencase9903
      @opencase9903 6 місяців тому

      Same idea no matter the numbers. For example, for Patty, the opportunity cost of making 1 cup is 3 plates. In other words, making 1 cup is costing her the opportunity to make 3 plates.
      Therefore, she should specialize in making plates and be willing to trade any time someone will give her 1 cup for less than 3 plates (i.e. 1 or 2 plates). Because for example, she can either make 1 cup and have 0 plates or she can make 3 plates and give someone 1 plate and get a cup in return for a total of 2 plates and 1 cup:) (this example assumes a market rate of 1 plate for one cup, just like in Sal's video)

  • @Melissa-oi2if
    @Melissa-oi2if 4 роки тому +11

    this was one of those "OHHHH" moments so thank you 🙌🏻

  • @booni5114
    @booni5114 4 роки тому +2

    The 'market price' is cheaper than the price of making it yourself. That's a comparative advantage in a nutshell.

  • @dairycow729
    @dairycow729 4 роки тому +3

    These videos carried and still continue to carry me through my schooling years

  • @doodlebuggyjump15
    @doodlebuggyjump15 12 років тому +7

    Your videos are really much help man especially as an A Level student. There are a few parts that I don't understand and this helped me. =)

  • @sarahsteinmetz7017
    @sarahsteinmetz7017 10 років тому +5

    I get it now. Thank you so much.

  • @-ibmshah-
    @-ibmshah- 2 роки тому +1

    I hope i can gave you my time for teaching Accounting and Finance for Free one day

  • @thatyoungfan
    @thatyoungfan 12 років тому +1

    maybe its different from school to school. but we learned all of this in Microeconomics

  • @chenliang1112
    @chenliang1112 4 роки тому

    So what you're saying is that different companies can cooperate to lower their OC and trade at a cheaper rate, which makes it possible for them to exceed their PPF. Nice job.

  • @Mcgurkyyy101
    @Mcgurkyyy101 4 роки тому

    My econ professor is indian and has poor english so this just helped me so much

  • @DigitizedSelf
    @DigitizedSelf 12 років тому

    These videos are great for relaxing and not thinking too much.

  • @eldarm1853
    @eldarm1853 3 роки тому +1

    I "learned" that globalisation = good. Thank you!

  • @theholywand11
    @theholywand11 13 років тому

    I'm 13 and know more microeconomecics than most people in high school

  • @josephwheelerton
    @josephwheelerton 7 років тому +27

    "The Gang Sells Cups"

  • @GyeonghunPyeon
    @GyeonghunPyeon 3 роки тому

    우리나라는 원이라는 화폐를 사용하고 미국에서는 달러라는 화폐를 사용합니다. 국제 무역에서 한 나라의 생산의 기회비용을 고려하였을 때 화폐가치가 상대국에 비해 뒤쳐지뎌라도 이익을 가져올 수 있다는 영상의 내용이 인상적이고 기억에남습니다. 앞으로도 좋은 영상 많이 올려주시면 감사하겠습니다.

  • @wadjeehachady7672
    @wadjeehachady7672 4 роки тому +1

    Thanks really well explained.
    It's really helping me for my exams

  • @brianyen373
    @brianyen373 2 роки тому

    Thanks for everything.

  • @GDPWorking
    @GDPWorking 5 місяців тому

    Cups vs plates in comparison makes both richer.

  • @tulsipatel646
    @tulsipatel646 7 років тому +1

    This content definitely helped me with my community college course. Feeling scatterbrained but the lighting and somehow the way you were worded this content made sense to me.

  • @YizzetLabs
    @YizzetLabs 5 років тому +1

    You have saved me Kahn. Bless you!

  • @Thecraziiii
    @Thecraziiii 11 років тому +3

    Thanks a lot this was really helpful

  • @MasterRia
    @MasterRia 9 років тому +1

    now its clear for me ..thank you

  • @banjo2861
    @banjo2861 12 років тому

    Great help and easy example - succinctly and clearly illustrated - Due Econ exam soon and this was a great help - Thank u

  • @adamweiss8509
    @adamweiss8509 5 років тому +3

    with that being said, is every trade scenario going to benefit from a trade of 1 of 1 ?

  • @12thando34
    @12thando34 12 років тому

    these videos are awesome and even more so because they are in a playlist

  • @johnpitt6052
    @johnpitt6052 11 років тому +1

    thanks for your wonderful lecture and i get so many information form your each Economic lecture and appreciate for your great job and hope that you will do more better in the future wish you all the best

  • @giangle5017
    @giangle5017 7 місяців тому

    I love your video, it is shockingly inspirational...I think I will com back when never I struggle with economic theory in this world, meme nothing easy right///

  • @frikhatomar6426
    @frikhatomar6426 Рік тому

    Mr Khan, you're the best (y)

  • @fabemma21
    @fabemma21 12 років тому +1

    Thank you and wonderful. explained in very simple terms.

  • @sanajamal8784
    @sanajamal8784 9 років тому +3

    best ever - well explained

  • @Harmonia96
    @Harmonia96 11 років тому +7

    Charlie and cups, because they start with "C" and Patty and plates, because they start with "P": brilliant. xD

  • @aprajitasharma1755
    @aprajitasharma1755 9 років тому +1

    Hi,
    A query, is trade between a developed country with and undeveloped country better or with another developed country? (Based on comparative advantage)

  • @tushtichakraborty4149
    @tushtichakraborty4149 4 роки тому

    This is amazing! Thank you for saving my life😭

  • @selinasaidumarova06
    @selinasaidumarova06 9 місяців тому

    Why i didn’t watch these videos earlier. This teacher is absolutely amazing, thank you 🥹

  • @jaybee587
    @jaybee587 3 роки тому

    Thank you

  • @cricclub2958
    @cricclub2958 2 роки тому

    Thanks for saving me..

  • @kasgeb.d
    @kasgeb.d 3 роки тому

    You are the best Khan. Thank you

  • @BlaZingDux
    @BlaZingDux 9 років тому +2

    Great video, as always!

  • @federicocammarata7024
    @federicocammarata7024 Рік тому

    Extreamely helpful

  • @SuupaDupaa
    @SuupaDupaa 11 років тому +1

    This is great! Thanks a lot

  • @sabrayahya89
    @sabrayahya89 4 роки тому

    so interesting video sir...........thanks

  • @Subarna_roy123
    @Subarna_roy123 5 років тому

    Good explanation sir. Thankyou .

  • @-ibmshah-
    @-ibmshah- 2 роки тому

    this is good ahhh thanks

  • @InsightCreationz
    @InsightCreationz 9 років тому +1

    Very good/simple explanation of absolute and comparative advantage :)

  • @levibaptista7900
    @levibaptista7900 11 місяців тому

    Great video

  • @matiassosa7962
    @matiassosa7962 3 роки тому

    I'm just gonna add a data, if the FPP is linear, then the economy only have one factor of production

  • @thelion2500
    @thelion2500 Рік тому +1

    My exam starts over 11 minutes and I'm here 😂

  • @jakeluk296
    @jakeluk296 8 років тому

    Thank you thank you thank you

  • @andreagonzales4141
    @andreagonzales4141 7 років тому

    So helpful!!!!!!!!!!!! thanks

  • @Btothewill
    @Btothewill 8 років тому

    thanks vlad

  • @heylulu351
    @heylulu351 4 роки тому

    7:36 is supposed to say "1 cup"

  • @wpxboston
    @wpxboston 10 років тому +4

    How did you get 15 plates as the optimal?

    • @bmac6446
      @bmac6446 9 років тому +9

      Because there are two people involved in the exchange. 30÷2=15

    • @patgrabiec4406
      @patgrabiec4406 4 роки тому

      I know this was 6 Years ago, but for anyone still wondering:
      Both Charlie and Patty can produce 30 units of either cups/plates because that is the most efficient for them. But in order to increase their Production Possibility Frontier they trade with each other, so that both of them have 15 of each, exceeding their independent PPF.

  • @dhruvpatel8076
    @dhruvpatel8076 9 років тому

    If a country has an absolute advantage, does it - always - have a comparative advantage in at least one of the two goods?

  • @rebekahgill2864
    @rebekahgill2864 3 роки тому

    my king

  • @bershkasen9245
    @bershkasen9245 10 років тому +1

    Thank you! I would love to know more about you (the man behind the voice). Is there a link to your profile somewhere ?

  • @virtuousjoffrey8022
    @virtuousjoffrey8022 9 років тому +2

    Are we assuming that we are trading all 15 cups with another country?

  • @BueTAnderbeest
    @BueTAnderbeest 11 років тому +1

    Good for you ").

  • @BijoySalahuddin
    @BijoySalahuddin 10 років тому

    I read this theory in International Business since it is an International Trade theory focused on Free Trade. After watching this video now it seems to me confusing.... :P

  • @charlesprenaveau4969
    @charlesprenaveau4969 2 роки тому

    So what I learned from this video is I need to outsource to china?

  • @mehmetaydin3103
    @mehmetaydin3103 5 років тому

    👏🏻 I appreciate

  • @chukwumau.5696
    @chukwumau.5696 11 років тому

    thanks a lot, if only you can do that of hecksher ohlin model

  • @IsmailHossain-gv3sl
    @IsmailHossain-gv3sl 5 років тому

    I think it is absolute advantage....May be I am wrong .......please correct me

  • @pedrovelazquez6900
    @pedrovelazquez6900 4 роки тому

    I got a little bit confuse!

  • @gdogvibes1
    @gdogvibes1 12 років тому

    Its really not to complicated, but being 12 I suppose it is,

  • @SamedHysa
    @SamedHysa 11 років тому

    any1 know how much total output would therefore be?

  • @12thando34
    @12thando34 12 років тому

    maybe u shud just leave this to us old people lol kidding...microecon...nice stuff i promise u

  • @priyanshigoel711
    @priyanshigoel711 7 років тому

    who gave this theory by the way?

  • @vatovindicator
    @vatovindicator 13 років тому +2

    im 12 and what is this

  • @brandonjacobs260
    @brandonjacobs260 10 років тому +1

    There are no gains from specialization only weaknesses when exploited you die or lose to someone who never specialized.
    UK never specialized and easily conquered Gambia whose only product is Peanuts.
    This is my theory of Comparative Advantage Trap in a peanut shell.
    By not specializing in only what you are good at, you increase your purchasing power against someone else who specializes.
    Food is 1/3rd of the US average household budget. If they didnt specialize...and grew their own food they would have that money to out bid others competitively for other goods.

    • @revathysanthakumar5226
      @revathysanthakumar5226 10 років тому +1

      K

    • @Sewblon
      @Sewblon 10 років тому +2

      Growing your own food takes time, effort and material resources like land and equipment. The opportunity cost of all of those things usually outweighs the financial benefits of not having to buy food. Have you ever known anyone to get rich by growing crops in their backyard?

  • @bertissimo
    @bertissimo 11 років тому

    Aaaaaaaaaahhhh!!! Please put real captions on this! Auto-Captions are terrible.

  • @bradendredge6809
    @bradendredge6809 3 роки тому

    Notes

    • @bradendredge6809
      @bradendredge6809 3 роки тому

      I’d rather have someone teach me something that they’re an expert in, while I teach them something I’m an expert in, than leaving both of us learning on our own. Teaching one another is a win-win situation.

    • @bradendredge6809
      @bradendredge6809 3 роки тому

      And when two people come together to offer a service, said services being much more difficult to attain by other means, they both gain all the more. Through specialization, economic mutual relationships are born.

    • @bradendredge6809
      @bradendredge6809 3 роки тому

      And, as always, the greatest acquisition in both of two resources is attained through each party’s complete focus on one or the other. So when two parties focus on one of those factors, and both parties attain more of that resource faster than the other, then a mutually beneficial trade can be made.

  • @volfmccarnivor1721
    @volfmccarnivor1721 6 років тому

    Nom nom nom on the nom nom scale? Compare to the nom nom scale! I wonder where I was on the nom nom scale? Ethics. Jesus loves you.

  • @1415J
    @1415J 3 роки тому

    If instead of charlie ,you had a girl, the video could have been titled, "Two girls, one cup".

  • @12thando34
    @12thando34 12 років тому

    IM SORRY

  • @BueTAnderbeest
    @BueTAnderbeest 11 років тому

    How mean! First of they could have dyslexia, or maybe just made a typo. Why 'laugh out loud' at that and then question their intelligence? If they just can't spell, note that it doesn't take an intelligent person to know how to spell, it just requires having a good memory. I believe that you and your 9 amigos ought to be saddened for finding humour in belittling a 13 year old.

  • @hoangnam-ye1xu
    @hoangnam-ye1xu 2 роки тому

    CovidImages need to be invested more than half19

  • @AP-ib7rf
    @AP-ib7rf Рік тому

    cups over plates, bruh !!!