22 February 2010


Ricardo's comparative advantage idea is one of the most important, poorly understood, and underused concepts in economics. It applies not just in foreign trade, but everywhere there is trade. Even dividing up the household chores might involve comparative advantage.

Here is Nobel Prizewinner Paul Krugman explaining the idea: http://bit.ly/rK0sh. Here you can get a free ebook of Ricardo's Principles of Political Economy and Taxation: http://bit.ly/brRjNO.


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