1. Comparative Advantage
អត្ថប្រយោជន៍ប្រៀបធៀប

2. 140$ 117$ Principle of Comparative Advantage
Everyone does best when each person (or each country) concentrates on the activities for which his or her opportunity cost is lowest.
140$
117$

3. Absolute Advantage អត្ថប្រយោជន៍ដាច់ខាត
Absolute Advantage one person has an absolute advantage over another if he or she takes fewer hours to perform a task than the other person.

4. Comparative Advantage អត្ថប្រយោជន៍ប្រៀបធៀប
Comparative Advantage one person has a comparative advantage over another if his or her opportunity cost of performing a task is lower than the other person’s opportunity cost.

5. Production Possibilities លទ្ធភាពផលិតកម្ម
Production Possibilities Curve (PPC) a graph that describes the maximum amount of one good that can be produced for every possible level of production of the other goods.

6. Production Possibilities Curve ខ្សែកោងលទ្ធភាពផលិតកម្ម
An efficient point is one that lies along the production possibilities curve.

7. Attainable កាទទួលយកបាន
Attainable Point ?
Attainable point any combination of goods that can be produced using currently available resources.
Attainable កាទទួលយកបាន

8. Unattainable មិនអាចទទួលបាន
Unattainable Point ?
Unattainable មិនអាចទទួលបាន
Unattainable point any​ combination of goods that​ cannot be produced using currently available resources.

9. Exercise 1
For the PPC shown in Figure 2.2, state whether the following points are attainable and/or efficient:
20 pounds per day of coffee, 4 pounds per day of nuts.
12 pounds per day of coffee, 6 pounds per day of nuts.
4 pounds per day of coffee, 8 pounds per day of nuts.

10. Answer of Exercise 1
In the accompanying graph, A (20 pounds per day of coffee, 4 pounds per day of nuts) is unattainable; B (12 pounds per day of coffee, 6 pounds per day of nuts) is both attainable and efficient; and C (4 pounds per day of coffee, 8 pounds per day of nuts) is both attainable and inefficient.

11. Exercise 2
Suppose Susan can pick 2 pounds of coffee per hour or gather 4 pounds of nuts per hour; Tom can pick 1 pound of coffee per hour and gather 1 pound of nuts per hour.
What is Susan’s opportunity cost of gathering a pound of nuts?
What is Tom’s opportunity cost of gathering a pound of nuts?
Where does Susan’s comparative advantage now lie?

12. Answer of Exercise 2 Labor Coffee/hour Nuts/hour Results Susan 2 4 1/2
Tom 1
Susan’s opportunity cost of gathering a pound of nuts is 1/2
Tom’s opportunity cost of gathering a pound of nuts is 1
So Tom has a comparative advantage at picking coffee and Susan has a comparative advantage at gathering nuts.

13. Shift of PPC

14. The Gains from Specialization and Exchange

15. Exercise 3—Individual Homework
How do differences in opportunity cost affect the gains from specialization? Susan can pick 5 pounds of coffee or gather 1 pound of nuts in an hour. Tom can pick 1 pound of coffee or gather 5 pounds of nuts in an hour. Assuming they again work 6-hour days and want to consume coffee and nuts in equal quantities, by how much will specialization increase their consumption compared to the alternative in which each produced only for his or her own consumption?

16. Slope
The ratio of the vertical change (the rise or fall) to the horizontal change (the run) between any two points on a line.