Sunday, March 7, 2010

10 Week 10 - Ricardo's Theory

If you've studied economy, you must have heard about comparative advantage. This concept was introduced by an economist, David Ricardo. In short, this theory says that in order to achieve market efficiency, we should specialize in doing our best. By doing so, everyone in the market may obtain their maximum gains.

Life is economy. We're in the market. Each of us do have comparative advantage. In theory we should devote our best skills to the society, however in reality it doesn't always happen. There's no place for some people to utilize their best skills, sadly. Sometimes, not everyone is aware of their comparative advantage. I personally believe that this kind of market failure may be accounted for the miserable working life of some people.

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