Comparative Advantage w/s

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AP Macroeconomics: Comparative Advantage
There are two ways to measure productivity: We can calculate output over a given period of time, or we
can measure it by the amount of inputs (usually time) necessary to do an activity. Examples of output are
tons per acre, miles per gallon, words per minute, apples per tree and televisions produced per hour.
Examples of input are number of hours to do a job, number of gallons to paint a house, number of acres to
feed a horse and number of pitches to throw a strike.
Output Method
Tons Produced per Hour
Fish
Cheese
60
25
45
40
Ted
Nancy
Input Method
Acres Required to Produce One Bushel
Apples
Pears
5
2
6
3
Tony
Chris
Practice Problems: calculate the opportunity cost and determine comparative advantage for each.
1. Anna and Barry can grow the following amounts of potatoes and cabbage with the same amount
of labor. Type of problem: (output / input)
Anna
Barry
Potatoes
100
120
Cabbage
200
150
2. Number caught per day. Type of problem: (output / input)
Henry
John
Deer
4
24
Antelope
6
12
3. Days of produce one unit of each. Type of problem: (output / input)
XYZ Corp.
QKFX Corp.
Cars
8
15
Planes
10
12
AP Macroeconomics: Comparative Advantage
4. Acres to produce 100 bushels. Type of problem: (output/ input)
India
China
Corn
9
8
Rice
3
2
5. To produce the following from one ton of olives. Type of problem: (output / input)
Zaire
Colombia
Cans of Olives
60
24
Bottles of Olive Oil
10
8
6. Number of hours to produce a ton of oats or one bagpipe. Type of problem: (output / input)
United States
Scotland
Oats
3
4
Bagpipe
2
5
7. Number of hours to produce a ton of wheat or one bolt of cloth. Type of problem: (output / input)
United States
Canada
Wheat
1
3
Cloth
2
4
8. Number of hours to produce one computer or one auto. Type of problem: (output / input)
United States
Japan
Computer
2
1
Auto
5
4
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