Explain the economic principles that characterize individual decision-making, motivate people to trade with one another, and form the basis of how the entire economy functions. Describe the kinds of questions economists try to answer when they perform scientiﬁc enquiry and identify the ideas that deﬁne their way of thinking. Distinguish between the concepts Comparative Advantage and Absolute Advantage and illustrate how the Specialization associated with the theory of Comparative Advantage can lead to mutually beneﬁcial gains in Trade.
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