1.3

Comparative Advantage and Gains from Trade

AP Macroeconomics

Absolute vs. Comparative Advantage

The Key Insight

Worked Example

Terms of Trade

Gains from Trade Illustrated

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Trade allows Mexico to consume beyond its own PPC

Key Rules

Output vs. Input Problems

AP Exam Tips

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Common Mistakes

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Unit 1 topics

Unit 1 overview1.1Scarcity1.2Opportunity Cost and the Production Possibilities Curve1.3Comparative Advantage and Gains from Trade1.4Demand1.5Supply1.6Market Equilibrium, Disequilibrium, and Changes in Equilibrium
← Previous1.2 Opportunity Cost and the Production Possibilities CurveNext →1.4 Demand
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