1. Input Method Men, women, and time needed.

2. My wife is good at ironing while I am good at changing tires To iron 1 shirtTo change one tire women620 men1015 Minutes needed to produce What does this graph immediately tell you?

3. Women are better at everything therefore I should sit on the couch while my wife works To iron 1 shirtTo change one tire women84 men129 Minutes needed to produce

4. Women are better at everything therefore I should sit on the couch while my wife works To iron 1 shirtTo change one tire women84 men129 Minutes needed to produce To iron 1 shirt women give up 2 tire changes To iron 1 shirt men give up 1 1/3 tire changes To change 1 tire women give up 1/2 a shirt ironed To change 1 tire men give up 3/4 a shirt ironed

5. Absolute and Comparative Advantage A person or nation has an absolute advantage when it can produce a particular good at a lower cost than another person or nation. Comparative advantage is the ability of one person or nation to produce a good at a lower opportunity cost than that of another person or nation.

6. The law of comparative advantage states that nations are better off when they produce goods and services for which they have a comparative advantage in supplying.

7. Output method UK China

8. Cheese and Cars; A simple world One CarOne ton Chz UK CHN Units produced per unit of production To make one car the UK gives up To make one ton of chz the UK gives up To make one car China gives up To make one ton of chz China gives up

9. Comparative Advantage CountryShoesOp Cost of Shoes ClothOp Cost of Cloth China312 India25

10. Comparative Advantage CountryShoesOp Cost of Shoes ClothOp Cost of Cloth China34 cloth121/4 shoe India22 ½ cloth52/5 shoe

11. Comparative Advantage CountryShoesOp Cost of Shoes ClothOp Cost of Cloth China34 cloth121/4 shoe India22 ½ cloth52/5 shoe

12. CountryriceOp Cost of rice computersOp Cost of Computers Japan Taiwan