AP Macroeconomics : How to find productivity
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Example Questions
Example Question #1 : How To Find Productivity
Country A can produce 10 cars or 5 computers. Country B can produce 6 cars or 4 computers.
Which country has the absolute advantage in producing computers?
Country B
Impossible to determine with the information given.
Country A
Neither country has the absolute advantage in producing computers.
Country A
Absolute advantage is determined by which country can produce more, regardless of efficiency. Country A can produce more computers than Country B, so it has the absolute advantage in producing computers.
Example Question #1 : Productivity
Country A can produce 10 cars or 5 computers. Country B can produce 6 cars or 4 computers.
Which country has the comparative advantage in producing computers?
Neither country has the comparative advantage in producing computers.
Country B
Impossible to determine
Country A
Country B
Country B can produce 4 computers or 6 cars. 
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