• Card 34 / 100: Give an example—not from the textbook—involving two people and two lines of production, where one party has the absolute advantage in both lines, but it still obviously makes sense for each to focus on his or her comparative advantage.

    Answer:
    The pattern here will be finding something "obvious" where one person is better at both things. The student doesn't need to be mathematical in the sense of listing numbers, but ideally the student will understand that absolute advantage does involve numbers. For example, a heart surgeon can probably deliver more newspapers per day than the neighborhood kid, and can successfully operate more times per day, but it makes sense for the kid to deliver all the newspapers so that the heart surgeon can focus on where he or she is really good.

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Capitalism: The Market Economy

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Attribution:  Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY
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