Comparative advantage, absolute advantage, specialization, and trade Microeconomics Basic Economic Concepts Comparative advantage, absolute advantage, specialization, and trade Questions What is specialization? How does absolute advantages change over time (if they do)? Why specialization is important in the operation of a market? How can trade lead to development? Basic Economic Concepts View all chapters Microeconomics vs. Macroeconomics Production–possibility frontier Comparative advantage, absolute advantage, specialization, and trade Economic systems Property rights and the role of incentives Marginal analysis Prev Next