This learning portfolio consists of a series of short writing assignments. You will be required to complete and revise these assignments throughout the semester, and to compile and submit your completed portfolio by the due date.<\/p>\n
Chapter 2 shows and discusses the gains from trade that can result when individuals, firms, or countries specialize in producing goods for which they have the comparative advantage, and trade those goods with others.<\/p>\n
Gains from specialization and exchange can be seen in many situations. For example, most people that we pay to do things for us (e.g. grow our food, cut our hair, tutor us, etc.) perform the task for a lower opportunity cost than we would bear if we were to do it ourselves. This is where the gain from trade that benefits both parties comes from, and is why it is rational for you to pay for the service. <\/p>\n
To show that you understand how comparative advantage works in the modern economy, please discuss a good or service you recently purchased and address the following prompts:<\/p>\n
If you want to see an example, check out the “great work” linked above. But do not copy the example or even the wording. There are many ways to express these ideas if you understand the material. Please find your own words or face the consequences of academic dishonesty.<\/p>\n
In chapter 3 we learn that the supply and demand for a good or service can shift in response to changes in certain variables, and about how supply and demand interact to determine the market equilibrium price.<\/p>\n
Please do not try to explain price changes in gasoline or cell phones. Please pick something else.<\/strong><\/p>\n Helpful tip: <\/strong>be sure you discuss both supply AND demand, as they both play a role in determining the price.<\/p>\n In our everyday lives as consumers we purchase many goods and services, and we derive consumers’ surplus for most of them. With that in mind, please:<\/p>\n Identify 3 goods or services you have purchased in the last year, and estimate the amount of consumer surplus you enjoy from those purchases. For each good, please state specifically:<\/p>\n You should have 3 short paragraphs, one for each good. Do not use a chart, please use words.<\/p>\n Helpful tips:<\/strong> Be sure to state exactly the highest price you would have been willing to pay, the price you actually paid, and what your consumer’s surplus is. There are many different phrases you can use to communicate the highest price you were willing to pay, but note that the following are incorrect<\/strong>:<\/p>\nChapter 4a:<\/strong><\/h4>\n
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