The Choice Essay

648 WordsJun 10, 20083 Pages
Questions : 1) How does Ricardo explain Comparative Advantage? 2) What happened to Ed´s grandchild before trade? 3) What happened to Ed´s grandchild after trade? Answers: 1)Ricardo explains Comparative Advantage in “The Choice” as followed: Dave gives “The Theory of Comparative Advantage” a different name and calls it “The Roundabout Way to Wealth”.(p.10) He says that this theory deals with the idea that even a nation which is relatively poor at doing everything, still do some things relatively well. “And a nation that is really good at many things should still specialize in producing some items and import the rest”.(p.10) Time is the ultimate scarce resource. Investing time in doing something means having less time in doing…show more content…
“There was no big-screen television or voice-controlled computer. Just a math book, a pad of yellow paper.” (p.109) . Justin also wears thick glasses. Justin has an eye problem which couldn’t be healed in a world without free trade. But as Dave tells the reader, Justin is only wearing the glasses because the “people Upstairs” made this happen. Justin normally doesn’t wear glasses at all, he “would have lost his eyesight entirely”.(p.110) The company Merck will only be able to develop the medicine Justin needed in a world of free trade. Otherwise America would be too busy by doing everything for itself and there wouldn’t be “enough people, machines, and land to go around to make everything as cheaply as could be made under free trade.”(p47) 3)In a world with trade is Justin seen doing his homework “in front of a big-screen television”(p.25) There is also a computer on a nearby desk. Everything is state of the art. But Justin still has problems with his eyes. That’s why his dad says that Justin had to watch his eyes and is not allowed to watch television very long. Ed is concerned about Justins eyes. Dave tells him, that it isn’t that worse and that Justin takes a special medicine which will cure him. But America is only able to get this medicine by free trade. America can only develop further if free trade is allowed. And every nation can only be better off and becoming richer if it doesn’t have trade

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