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Why Do People Trade?

Why Do People Trade?. Capstone Lesson 44. Class Ranking of Tradable Items. Voluntary Trade. Benefits both parties Win-Win Consider simple daily examples Consider city, state or nation without trade. What are these people about to say to each other?. Absolute and Comparative Advantag e.

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Opportunity Costs

Opportunity Costs. Scarcity & Opportunity Cost. Because of scarcity, we must make choices With any choice, there are costs & benefits. The Big Idea. Opportunity Cost is the value of any alternative that you must give up when you make a choice. It is the value of the opportunity lost.

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Why Do People Trade?

Opportunity Costs