1.7 Comparative and Absolute Advantage Answers

Which of the following statements is a valid economic conclusion based on this information?

absolute✔ comparative

✔ absolute comparative

[___] A producer can provide cable service more cheaply than another producer.

[___] A producer can produce salads while giving up fewer opportunities to make sandwiches than another producer.

[___] A producer can create more car parts than another producer, while using the same number of resources.

In this example, [___] has an absolute advantage in processing tax returns.

[___] has an absolute advantage in completing sales calls.

Use the production possibility schedule to complete each sentence. Producers have a comparative advantage when they have a opportunity cost. has a comparative advantage in processing tax returns. has a comparative advantage in making sales calls.

Sam✔ KC

✔ Sam KC

Look at the examples, and then determine which type of advantage each one describes. A producer can provide cable service more cheaply than another producer. A producer can produce salads while giving up fewer opportunities to make sandwiches than another producer. A producer can create more car parts than another producer, while using the same number of resources.

Sam and KC both work in a tax office. Both workers use the same number of resources to do their jobs. Use the production possibility schedule to complete each sentence. In this example, has an absolute advantage in processing tax returns. has an absolute advantage in completing sales calls.

Which of the following statements is a valid economic conclusion based on this information?

Which of the following concepts were mentioned in your answer? Check all that apply.

Did your response mention any of the following ideas? Check all that apply.

✔ Sam KC

Use the production possibility schedule to complete each sentence.

Producers have a comparative advantage when they have a [___] opportunity cost.

[___] has a comparative advantage in processing tax returns.