Explain the Difference Between Absolute Advantage and Comparative Advantage

question 99

Essay

Explain the difference between absolute advantage and comparative advantage. Which is more important in determining trade patterns, absolute advantage or comparative advantage? Why?

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Definitions:

Cortisone

A steroid hormone produced by the adrenal cortex or synthetically, used medicinally to treat inflammation and adrenal insufficiency.

Cortisol

Glucocorticoid secreted by the adrenal cortex that responds to stress on a long-term basis; reduces inflammation and promotes protein and fat metabolism.

Adrenal Cortex

Outer portion of the adrenal gland; secretes mineralocorticoids, such as aldosterone, and glucocorticoids, such as cortisol.

Long-Term Stress

Chronic stress experienced over an extended period of time, which can negatively affect health, mood, productivity, and relationships.