Period:_____Name:________________________

Specialization:
Absolute Advantage and Comparative Advantage


1. How many sh and pineapple can Jake and George produce in one week if:
Jake can produce 3 sh or 6 pineapples in one day.
George can produce 4 sh or 10 pineapples in one day.


2. Who has the absolute advantage in producing sh? Who has the absolute advantage in
producing pineapple?



3. Explain how to gure out who has the absolute advantage in the production of a product.




4. What is the opportunity cost for each person to produce 1 sh? What is the opportunity cost
for each person to produce 1 pineapple?


Absolute Advantage:

Comparative Advantage:

5-Day Production
Possibilities
Fish Pineapple
Jake
George
Opportunity Cost
Fish Pineapple
Jake
George
5. Who has the comparative advantage in producing sh? Who has the comparative
advantage in producing pineapple?




6. Explain how to calculate the opportunity cost of producing one product over another.







7. If George and Jake do NOT specialize, how many sh and pineapple will they produce,
assuming they sh for 2 days and gather pineapple for 3 days?




8. If George and Jake specialize based on comparative advantage, how many sh and


pineapple with they produce in ve days?




9. How are George and Jake better off with specialization?



Production without trade or
specialization
Fish Pineapple
Jake
George
Total
Production WITH trade and
specialization
Fish Pineapple
Jake
George
Total
10. Try the process on your own. Given the following information:
Jessie can produce 30 cats or 35 dogs in one day.
Herbert can produce 12 cats or 23 dogs in one day.


Who has the absolute advantage in producing each product?


Who has the comparative advantage in producing each product?






5-Day Production
Possibilities
Cats Dogs
Jessie
Herbert
Opportunity Cost
Cats Dogs
Jessie
Herbert
Production without trade or
specialization
2 Days of Producing Cats 2 Days of Producing Dogs
Cats Dogs
Jessie
Herbert
Total
Production WITH trade and
specialization
4 Days of Producing Cats 4 Days of Producing Dogs
Cats Dogs
Jessie
Herbert
Total