How to Ace Comparative Advantage Questions on Your Exam

Are you consistently losing points on Comparative Advantage because of thinking absolute advantage is what matters for trade? If so, you're making the exact same error as 80% of your class.

Inside the Professor's Mind

Professors don't write Comparative Advantage questions to test your basic memorization. They write them to test if you will fall for the classic pitfall: thinking absolute advantage is what matters for trade.

When you sit down for the exam, write that specific trap at the top of your paper so you don't forget it.

What A Correct Answer Looks Like

Even if Country A is better at making BOTH cars and computers than Country B, they should still trade based on lowest opportunity cost.

If your scratch paper doesn't look like that, you are losing points.

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