This post relates to the following Keystone Economic Principles:
6. Do what you do best, trade for the rest.
and
8. Quantity and quality of available resources impact living standards.
I reviewed the book Sweet Potato Pie just a few days ago. Now the Powell Center has an online lesson plan to accompany the book. Enjoy, and please share any comments about the lesson.
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2 comments:
I was wondering how much I really followed the law of comparative advantage in my life. For example, today I fixed the screen door, but I'm not handyman. Yet, if I would have hired someone to fix the door for me while I did what I do best(teach, I hope), the screen door would have been costly in both absolute and relative terms. Like wise, when my wife mows the lawn, (she loves it) she gives up the income she could earn as a dental specialist. I was wondering how many tasks one does every day, (making the bed, cooking, cleaning) that one has no comparative advantage? Best wishes
I often find myself wondering the same thing, Mike. But I always come back to the idea that we make choices that make us better off. And part of the "better off" may come from a sense of self-satisfaction (psychic income?). Your wife loves mowing the lawn. You may derive some sense of self-satisfaction from fixing the door. I don't send my shirts out, I do them myself - including ironing. And there's a sense of achievement - a profit, if you will. We can also factor in time value - it may be more convenient, etc.
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