AP Microeconomics 1.4: Absolute and Comparative Advantage

Learn how absolute advantage differs from comparative advantage, then use production data and opportunity costs to identify each producer’s specialization.

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The graph shows the production possibilities curves for Northland and Southland.

Figure for Question MKT-2.A—a. Define absolute advantage and comparative advantage. b. Determine (using data from PPCs or tables as appropriate) absolute and… question 1 — AP Microeconomics

(a)

Which country has a comparative advantage in producing wheat? Explain using numbers.

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(b)

Southland's maximum possible output of wheat falls from 100 bushels to 75 bushels. Assuming no other changes, will Southland have a comparative advantage in producing cloth? Explain using numbers.

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MKT-2.A—a. Define absolute advantage and comparative advantage. b. Determine (using data from PPCs or tables as appropriate) absolute and… question 1

Question (a)

Question (b)