1. Absolute Advantage and Comparative Advantage, Specialization and Trade Absolute Advantage- One nation can produce more output with the same resources as the other Absolute Advantage- One nation can produce more output with the same resources as the other Comparative Advantage- One nation can produce a good at a lower opportunity cost than the other Comparative Advantage- One nation can produce a good at a lower opportunity cost than the other Examples of Comparative Advantage- Doctor and Nurse Examples of Comparative Advantage- Doctor and Nurse

2. Why is comparative advantage important? Why does it matter if Ty and Jessica save 35 minutes by specializing in what they do comparatively better? Why does it matter if Ty and Jessica save 35 minutes by specializing in what they do comparatively better? Why should Mark and Doreen specialize in what they have a comparative advantage in? Why should Mark and Doreen specialize in what they have a comparative advantage in?

3. Determining Comparative Advantage (Output Method) CDs Beef CDs Beef Japan4 2 Canada4 6 Which nation has an absolute advantage in producing CDs? Beef? Which nation has an absolute advantage in producing CDs? Beef? Which nation has a comparative advantage in producing in producing CDs? Beef? Which nation has a comparative advantage in producing in producing CDs? Beef? Should Japan specialize in CDs or beef? Should Canada specialize in CDs or beef? Should Japan specialize in CDs or beef? Should Canada specialize in CDs or beef?