Explain this statement The gains from trade by Dr. Robert Murphy

Question 29 / 96: Explain this statement: "The gains from trade in a case of absolute advantage are obvious, but they can be quite subtle in a case of comparative advantage."

Answer:

If Joe is an expert lawyer while Sally is an expert dentist, it is perfectly obvious that they benefit from Joe trading legal services in exchange for Sally's dental work.

But in the text's hypothetical case of Marcia the storekeeper and John the hired help, it's not clear at first why Marcia benefits from hiring someone to do a job she could more quickly herself.

Sorry No Instant Evalutaion available for this question

<< First < Previous Flashcard Next > Last >> Test Home Page

https://www.jobilize.com/capitalism-the-market-economy-by-dr-robert-murphy-mises

Capitalism: The Market Economy

Access: Public Peer Review

Dr.Robert MurphyAssociated Scholar

Mises Institute

USA

Attribution: Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY

Ask

	Anthropology Aesthetics Culture By Richley Crapo Start Assignment
	8 Neuroanatomy 08 The Vestibular System By Stephen Voron Start Quiz
	7 AP Key Terms 07 Axial Skeleton By OpenStax Start Key Terms
	3 Understanding Societies MCQ By Jessica Collett Start Quiz
	Fundamentals of electrical engineering i By OpenStax Read Online Course
	NCE Ch 09 Research and Program Evaluation By Anh Dao Start Quiz
	Algebra and trigonometry By OpenStax Read Online Course
	Professional Writing MCQ By Mary Cohen Start Quiz
	18 AP Key Terms 18 Cardiovascular System Blood By OpenStax Start Key Terms
©flickr: Abraham	3 Biology 3 By Sarah Warren Start Test

Copy and paste the following HTML code into your website or blog.