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Lesson 5 comparative & absolute advantage - power point - duke

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1) Thalia has an absolute advantage in both English problems and math problems as she can complete them faster than Chase. 2) However, Thalia has a comparative advantage in math problems while Chase has a comparative advantage in English problems due to their opportunity costs. 3) If they specialize and Thalia does the math while Chase does the English, they can both complete their assignments faster and have more time to attend the volleyball game.

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So Many Goods - So Many Places Absolute and Comparative Advantage
Where was I made? United States Honduras Thailand Haiti China Bangladesh Taiwan Brazil Buy American
Why should people in the United States buy American made products? At least three sentences. Why Buy?
Guess Where Revealed
Debrief 1. Why do so many of you purchase foreign made goods? What was your incentive for buying from foreign producers? 2. If you are using American-made products, what was your incentive for purchasing them? 3. Did your purchase of foreign- made goods make our country better or worse off?
Absolute Advantage Absolute Advantage: The ability to produce more of a given product using a given amount of resources.
Comparative Advantage Comparative Advantage: The ability to produce a product most efficiently given all the other products that can be produced.
Lets meet..
The Challenge Thalia and Chase attend Tesoro High School and are in the same economics class. Tonights economic assignment contains 2 math problems and 2 English problems. This assignment gives students the option of working in a group or individually. Tesoro Highs state championship volleyball game is tonight and both Chase and Thalia need to finish their homework prior to attending the game. Should Thalia and Chase work separately or together?
30 Min. Absolute Advantage Thali Ch English Math Time 10 Min. 40 Min. 20 Min. 30 Min. Who takes the least amount of time to do their work ? 70 Min.
Thalia has an absolute advantage in English and math.
Remember opportunity cost?
1 1/3 mathEnglish math 2 English Comparative Advantage Thalia Chase English 10 min. 40 min. Math 20 min. 30 min. Opportunity Cost of Doing a Job 遜 math 他 English When Thalia decides to do the math, how many English problems is she giving up? When Chase does the English, what does he give up? Thalia has the comparative advantage in math. Chase has the comparative advantage in English.
Comparative Advantage Thalia Chase English 10 min. 40 min. Math 20 min. 30 min. 30 min. 70 min. AFTER SPECIALIZING IN ONE JOB! Chase = completes (2)math problems in 60 min. and saves 10 min. Thalia = completes (2) English problems in 20 min. and saves 10 min. *Specialization allows Thalia and Chase more time to engage in more productive behavior!
Lesson 5 comparative & absolute advantage - power point - duke
Now We Do Auva and Drew must clean their house. They must complete 2 loads of dishes and take out 2 loads of trash. Auva can wash 1 load of dishes in 20 minutes And she can take out 1 load of trash in 30 minutes. Drew can wash 1 load of dishes in 50 minutes. And he can take out 1 load of trash in 40 minutes. Who has the absolute advantage? Who has the comparative advantage?
Absolute Advantage Dishes Trash Time 20 min. 50 min. 30 min. 40 min. 50 min. 90 min. Who takes the least amount of time to do their work ?
Auva has an absolute advantage in doing the dishes and taking out the trash.
Drew is incompetent compared to his rock star sister.
1 村 TrashDishes Trash 1 1/3 Dish Comparative Advantage Auva Drew Dishes 20 min. 50 min. Trash 30 min. 40 min. Opportunity Cost of Doing a Job 2/3 Trash 4/5 Dish When Auva takes out the trash, how many loads of dishes does she give up? When Drew does the dishes, what dose he give up? Auva has the comparative advantage in doing the dishes. Drew has the comparative advantage in taking out the trash.
Comparative Advantage Auva Drew Dishes 20 min. 50 min. Trash 30 min. 40 min. 50 min. 90 min. AFTER SPECIALIZING IN ONE JOB! Auva saves 10 minutes. Drew saves 10 minutes!

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Lesson 5 comparative & absolute advantage - power point - duke

  • 1. So Many Goods - So Many Places Absolute and Comparative Advantage
  • 2. Where was I made? United States Honduras Thailand Haiti China Bangladesh Taiwan Brazil Buy American
  • 3. Why should people in the United States buy American made products? At least three sentences. Why Buy?
  • 5. Debrief 1. Why do so many of you purchase foreign made goods? What was your incentive for buying from foreign producers? 2. If you are using American-made products, what was your incentive for purchasing them? 3. Did your purchase of foreign- made goods make our country better or worse off?
  • 6. Absolute Advantage Absolute Advantage: The ability to produce more of a given product using a given amount of resources.
  • 7. Comparative Advantage Comparative Advantage: The ability to produce a product most efficiently given all the other products that can be produced.
  • 9. The Challenge Thalia and Chase attend Tesoro High School and are in the same economics class. Tonights economic assignment contains 2 math problems and 2 English problems. This assignment gives students the option of working in a group or individually. Tesoro Highs state championship volleyball game is tonight and both Chase and Thalia need to finish their homework prior to attending the game. Should Thalia and Chase work separately or together?
  • 10. 30 Min. Absolute Advantage Thali Ch English Math Time 10 Min. 40 Min. 20 Min. 30 Min. Who takes the least amount of time to do their work ? 70 Min.
  • 11. Thalia has an absolute advantage in English and math.
  • 13. 1 1/3 mathEnglish math 2 English Comparative Advantage Thalia Chase English 10 min. 40 min. Math 20 min. 30 min. Opportunity Cost of Doing a Job 遜 math 他 English When Thalia decides to do the math, how many English problems is she giving up? When Chase does the English, what does he give up? Thalia has the comparative advantage in math. Chase has the comparative advantage in English.
  • 14. Comparative Advantage Thalia Chase English 10 min. 40 min. Math 20 min. 30 min. 30 min. 70 min. AFTER SPECIALIZING IN ONE JOB! Chase = completes (2)math problems in 60 min. and saves 10 min. Thalia = completes (2) English problems in 20 min. and saves 10 min. *Specialization allows Thalia and Chase more time to engage in more productive behavior!
  • 16. Now We Do Auva and Drew must clean their house. They must complete 2 loads of dishes and take out 2 loads of trash. Auva can wash 1 load of dishes in 20 minutes And she can take out 1 load of trash in 30 minutes. Drew can wash 1 load of dishes in 50 minutes. And he can take out 1 load of trash in 40 minutes. Who has the absolute advantage? Who has the comparative advantage?
  • 17. Absolute Advantage Dishes Trash Time 20 min. 50 min. 30 min. 40 min. 50 min. 90 min. Who takes the least amount of time to do their work ?
  • 18. Auva has an absolute advantage in doing the dishes and taking out the trash.
  • 19. Drew is incompetent compared to his rock star sister.
  • 20. 1 村 TrashDishes Trash 1 1/3 Dish Comparative Advantage Auva Drew Dishes 20 min. 50 min. Trash 30 min. 40 min. Opportunity Cost of Doing a Job 2/3 Trash 4/5 Dish When Auva takes out the trash, how many loads of dishes does she give up? When Drew does the dishes, what dose he give up? Auva has the comparative advantage in doing the dishes. Drew has the comparative advantage in taking out the trash.
  • 21. Comparative Advantage Auva Drew Dishes 20 min. 50 min. Trash 30 min. 40 min. 50 min. 90 min. AFTER SPECIALIZING IN ONE JOB! Auva saves 10 minutes. Drew saves 10 minutes!