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Comparative Advantage Worksheet

This document contains information about absolute and comparative advantage across three scenarios: Mike and Debby doing chores, Andy and Hannah doing chores, and the US and Japan producing goods. It includes time required to complete different tasks as well as questions to determine opportunity costs, who has an absolute advantage, who has a comparative advantage, and who should do which task or produce which good.

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Asad Mirza
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935 views

Comparative Advantage Worksheet

This document contains information about absolute and comparative advantage across three scenarios: Mike and Debby doing chores, Andy and Hannah doing chores, and the US and Japan producing goods. It includes time required to complete different tasks as well as questions to determine opportunity costs, who has an absolute advantage, who has a comparative advantage, and who should do which task or produce which good.

Uploaded by

Asad Mirza
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Comparative Advantage Worksheet: What is the difference between absolute advantage and comparative advantage?

Use the charts to complete the following questions: MIKE & DEBBY
Mike Vacuum room Wash Dishes 60 minutes 45 minutes Debby 30 minutes 45 minutes

ANDY: 1 room = _______load 1 load = _______room 1. 2. 3. 4. 5. 6. 7. 8. 9.

DEBBY: 1 room = _______load 1 load = _______room

What is Mikes opportunity cost of vacuuming in terms of washing dishes? What is Mikes opportunity cost of washing dishes in terms of vacuuming? What is Debbies opportunity cost of vacuuming in terms of washing dishes? What is Debbies opportunity cost of washing dishes in terms of vacuuming? Who has the absolute advantage in vacuuming? Who has the absolute advantage in washing dishes? Who has the comparative advantage in vacuuming? Who has the comparative advantage in washing dishes? Who should do which chore and why?

ANDY & HANNAH


Andy cleaning offices cleaning jail cells 60 minutes 30 minutes Hannah 20 minutes 15 minutes

ANDY: 1 office = ______jail cells 1 jail cell = _______office

HANNAH: 1 office = ______jail cells 1 jail cell = ______office

10. What is Andys opportunity cost of cleaning offices in terms of cleaning jail cells? 11. What is Hannahs opportunity cost of cleaning offices in terms of cleaning jail cells? 12. What is Andys opportunity cost of cleaning jail cells in terms of cleaning offices? 13. What is Hannahs opportunity cost of cleaning jail cells in terms of cleaning offices? 14. Who has the absolute advantage in cleaning offices? 15. Who has the absolute advantage in cleaning jail cells? 16. Who has the comparative advantage in cleaning offices? 17. Who has the comparative advantage in cleaning jail cells? 18. Who should do which chore and why?

US & JAPAN
US Cars Computers 12 4 JAPAN 10 6

US: 1 car = _______computer 1 computer =________ car

JAPAN: 1 car = _______ computer 1 computer = _______car

19. What is the USs opportunity cost of making cars? 20. What is Japans opportunity cost of making cars? 21. What is USs opportunity cost of making computers? 22. What is Japans opportunity cost of making computers? 23. Who has the absolute advantage in cars? 24. Who has the absolute advantage in computers? 25. Who has the comparative advantage in cars? 26. Who has the comparative advantage in computers? 27. Which country should produce which good and why?

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