NAME______________________________

COMPARATIVE ADVANTAGE WORKSHEET

Directions: For each constant cost problem below, answer the following questions after creating a cost ratio table:
1. Does OUTPUT vary or does INPUT vary in this problem?
2. Who has the absolute advantage for each product?
3. Who has a comparative advantage for the first product?
4. Who has a comparative advantage for the second product?
5. Within what range will the terms of trade be?
REMEMBER:
(OOO) Output problems Opportunity cost goes Over
(IOU) Input problems Opportunity cost goes Under

(a) Mexico is able to produce 15 tons of soybeans or 60 tons of avocados. The US is able to produce 30 tons of
soybeans or 90 tons of avocados.
1.
2.
3.
4.
5.

(b) The US is able to produce 30 tons of coffee or 30 tons of wheat. Brazil is able to produce 20 tons of coffee or 10
tons of wheat.
1.
2.
3.
4.
5.

(c) Robinson Crusoe can gather 10 coconuts or catch 1 fish per hour. His friend, Friday, can gather 30 coconuts or
catch 2 fish per hour.
1.
2.
3.
4.
5.

(d) In Texas, a Farmer requires 40 hours of labor to produce one unit of beef or 20 hours of labor to produce one
unit of potatoes. His neighbor, a Rancher, requires 30 hours of labor to produce one unit of beef or 10 hours of
labor to produce one unit of potatoes.
1.
2.
3.
4.
5.

1
NAME______________________________
COMPARATIVE ADVANTAGE WORKSHEET
WORKSHEET… DUE NEXT CLASS

1. Joy gives 2 haircuts or one perm in an hour. Susie gives 3 haircuts or 2 perms in an hour.
1.
2.
3.
4.
5.

2. George fixes 16 flats or 8 brakes per day. Amy fixes 14 flats or 8 brakes per day.
1.
2.
3.
4.
5.

3. Ana takes 30 minutes to wash the dishes and one hour to vacuum the house. Her husband, Joe, takes 15 minutes
to wash the dishes and 45 minutes to vacuum the house.
1.
2.
3.
4.
5.

4. Texans require 10 labor hours per unit of beef produced and 30 labor hours per unit of cotton produced.
Virginians require 15 labor hours per unit of beef and 40 hours per unit of cotton.
1.
2.
3.
4.
5.

5. Spaniards can produce 10 gallons of wine or 8 gallons of olive oil per worker hour. Americans can produce 9
gallons of wine or 3 gallons of olive oil per worker hour.
1.
2.
3.
4.
5.

2
NAME______________________________
COMPARATIVE ADVANTAGE WORKSHEET
6. It takes Canadians 6 hours to produce one unit of calculators and 4 hours to produce one unit of backpacks. It
takes Japanese 2 hours to produce the calculators and 3 hours to produce the backpacks.
1.
2.
3.
4.
5.

7. Americans produce 50 computers or 50 TVs per million hours of labor. Chinese produce 30 computers or 40
TVs per million hours of labor.
1.
2.
3.
4.
5.

8. Refinery EM can produce 22 gallons of gasoline or 18 gallons of flight fuel per barrel of crude oil. Refinery CG can
produce 18 gallons of gasoline or 16 gallons of flight fuel per barrel of crude oil.
1.
2.
3.
4.
5.

9. Victor can mow a yard in 2 hours for $30 or he can work at the mall for 3 hours for $30. Elizabeth can mow a
yard in 3 hours for $30 or she can work at the mall for 4 hours for $30.
1.
2.
3.
4.
5.