Logan and Addison
Jessie and Skylar
Taylor and Casey
Jordan and Sammie
Vocabulary
100
Scenario: Logan and Addison run bars. They both produce bottles of beer and hamburgers. Logan can produce 20 hamburgers or 4 bottles of beer per hour. Addison can produce 10 hamburgers or 3 bottles of beer per hour. This person has the absolute advantage.
Who is Logan?
100
Scenario: Jessie and Skylar are farmers in New England. Jessie can produce 6 ounces of potatoes or 12 ounces of peas in an hour. Skylar can produce 4 ounces of potatoes or 10 ounces of peas in an hour. This person has the absolute advantage.
Who is Jessie?
100
Scenario: Taylor is a worker in the United States and Casey is a worker in China. China and the U.S. both produce snowboards and iPods. In one year, Taylor can produce 30 snowboards or 12 iPods. Casey can produce 40 snowboards or 15 iPods in one year. This person has the absolute advantage.
Who is Casey?
100
Scenario: Jordan and Sammie can both make incredible pizza and fantastic macaroni and cheese. Jordan can make 4 pizzas or 6 batches of macaroni and cheese in an hour. Sammie has a much larger kitchen and can produce 10 pizzas or 12 batches of macaroni and cheese in an hour. This person has the absolute advantage.
Who is Sammie?
100
These are goods produced abroad and sold domestically.
What are imports?
200
Scenario: Logan and Addison run bars. They both produce bottles of beer and hamburgers. Logan can produce 20 hamburgers or 4 bottles of beer per hour. Addison can produce 10 hamburgers or 3 bottles of beer per hour. This is the opportunity cost Logan has for one bottle of beer.
What is 5 hamburgers?
200
Scenario: Jessie and Skylar are farmers in New England. Jessie can produce 6 ounces of potatoes or 12 ounces of peas in an hour. Skylar can produce 4 ounces of potatoes or 10 ounces of peas in an hour. This is the opportunity cost for Jessie to produce one ounce of potatoes.
What is 2 ounces of peas?
200
Scenario: Taylor is a worker in the United States and Casey is a worker in China. China and the U.S. both produce snowboards and iPods. In one year, Taylor can produce 30 snowboards or 12 iPods. Casey can produce 40 snowboards or 15 iPods in one year. This is the opportunity cost Taylor has to produce 1 iPod.
What is 2.5 snowboards?
200
Scenario: Jordan and Sammie can both make incredible pizza and fantastic macaroni and cheese. Jordan can make 4 pizzas or 6 batches of macaroni and cheese in an hour. Sammie has a much larger kitchen and can produce 10 pizzas or 12 batches of macaroni and cheese in an hour. This is the opportunity cost Sammie has for one pizza.
What is 1.2 or 6/5 batches of macaroni and cheese?
200
These are goods produced domestically and sold abroad.
What are exports?
300
Scenario: Logan and Addison run bars. They both produce bottles of beer and hamburgers. Logan can produce 20 hamburgers or 4 bottles of beer per hour. Addison can produce 10 hamburgers or 3 bottles of beer per hour. This person has the comparative advantage for producing beer.
Who is Addison?
300
Scenario: Jessie and Skylar are farmers in New England. Jessie can produce 6 ounces of potatoes or 12 ounces of peas in an hour. Skylar can produce 4 ounces of potatoes or 10 ounces of peas in an hour. This person has the comparative advantage for producing potatoes.
Who is Skylar?
300
Scenario: Taylor is a worker in the United States and Casey is a worker in China. China and the U.S. both produce snowboards and iPods. In one year, Taylor can produce 30 snowboards or 12 iPods. Casey can produce 40 snowboards or 15 iPods in one year. This person has the comparative advantage for producing iPods.
Who is Taylor?
300
Scenario: Jordan and Sammie can both make incredible pizza and fantastic macaroni and cheese. Jordan can make 4 pizzas or 6 batches of macaroni and cheese in an hour. Sammie has a much larger kitchen and can produce 10 pizzas or 12 batches of macaroni and cheese in an hour. This person has the comparative advantage for producing pizza.
Who is Jordan?
300
This is whatever must be given up to obtain some item.
What is opportunity cost?
400
Scenario: Logan and Addison run bars. They both produce bottles of beer and hamburgers. Logan can produce 20 hamburgers or 4 bottles of beer per hour. Addison can produce 15 hamburgers or 3 bottles of beer per hour. This is the person who will produce hamburgers.
Who is Logan?
400
Scenario: Jessie and Skylar are farmers in New England. Jessie can produce 6 ounces of potatoes or 12 ounces of peas in an hour. Skylar can produce 4 ounces of potatoes or 10 ounces of peas in an hour. This is the person that will produce peas.
Who is Jessie?
400
Scenario: Taylor is a worker in the United States and Casey is a worker in China. China and the U.S. both produce snowboards and iPods. In one year, Taylor can produce 30 snowboards or 12 iPods. Casey can produce 40 snowboards or 15 iPods in one year. This is the person who will produce snowboards.
Who is Casey?
400
Scenario: Jordan and Sammie can both make incredible pizza and fantastic macaroni and cheese. Jordan can make 4 pizzas or 6 batches of macaroni and cheese in an hour. Sammie has a much larger kitchen and can produce 10 pizzas or 12 batches of macaroni and cheese in an hour. This is the person who will produce batches of macaroni.
Who is Sammie?
400
This is the ability to produce a good using fewer inputs than another producer.
What is absolute advantage?
500
Scenario: Logan and Addison run bars. They both produce bottles of beer and hamburgers. Logan can produce 20 hamburgers or 4 bottles of beer per hour. Addison can produce 10 hamburgers or 3 bottles of beer per hour. This is the range of prices of beer in terms of hamburgers that benefits both people after trade.
What is 3.3 hamburgers through 5 hamburgers?
500
Scenario: Jessie and Skylar are farmers in New England. Jessie can produce 6 ounces of potatoes or 12 ounces of peas in an hour. Skylar can produce 4 ounces of potatoes or 10 ounces of peas in an hour. This is the range of prices of potatoes in terms of peas that benefits both people after trade.
What is 2 ounces of peas through 2.5 ounces of peas?
500
Scenario: Taylor is a worker in the United States and Casey is a worker in China. China and the U.S. both produce snowboards and iPods. In one year, Taylor can produce 30 snowboards or 12 iPods. Casey can produce 40 snowboards or 15 iPods in one year. This is the range of prices of iPods in terms of snowboards that benefits both people after trade.
What is 2 1/2 snowboards through 2 2/3 snowboards?
500
Scenario: Jordan and Sammie can both make incredible pizza and fantastic macaroni and cheese. Jordan can make 4 pizzas or 6 batches of macaroni and cheese in an hour. Sammie has a much larger kitchen and can produce 10 pizzas or 12 batches of macaroni and cheese in an hour. This is the range of prices of pizzas in terms of batches of macaroni that benefits both people after trade.
What is 1.2 batches of macaroni through 1.5 batches of macaroni?
500
This is the ability to produce a good at a lower cost than another producer.
What is comparative advantage?
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