SBU Econ · Trade theory

Comparative Advantage Practice

Practice two-producer, two-good trade problems with clearer production context, actual units, and step-by-step trade logic.

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Comparative advantage depends on opportunity cost, not just who can produce more.

Current Problem

Time Needed to Make 1 Unit

Producer Good 1 Good 2

Amount Produced in 8 Hours

Producer Good 1 Good 2

Practice Prompts

Try these on paper before revealing the answer.

  1. Who has the absolute advantage in each good?
  2. What is the opportunity cost of each good for each producer?
  3. Who has the comparative advantage in each good?
  4. Who should specialize in what?
  5. What trade ratio between the two goods would be plausible, and why?

Check My Work

Enter your opportunity costs and comparative advantage choices, then check for mistakes.

Producer 1

Producer 2