14 February 2012

Happy Valentines!

I saw these two valentines on the Freakonomics twitter feed this morning and loved them.  The girl who designed them has 14 economic v-day cards but these two were by far my faves.
This first one is out of sight.  Comparative advantage can be a difficult concept to teach and this is a wonderful example.  Two entities each have a comparative advantage in one product (fun or happy) and when the two specialize and engage in trade they are both able to achieve higher levels of fun AND happy than they would be able to on their own.
The second uses the production possibilities curve, which is an easy visualization showing all possible production combinations along the curve.  Anything inside the curve shows resources being underutilized or ineffecient production.  Anything outside the curve is, well, as it states, impossible.  :)
Enjoy a  happy Valentine's day!

3 comments:

  1. these were hilarious. and thought provoking -- I had to do some brush up work (thanks wikipedia) on comparative advantage
    -E

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