refrigerators.

Number of Workers needed to produce

Number of Workers needed to produce 1,000

1,000 units — Shoes

units — Refrigerators

Country

United

States

4 workers

Mexico

5 workers

1 worker

4 workers

TABLE 19.7 Resources Needed to Produce Shoes and Refrigerators

Absolute advantage simply compares the productivity of a worker between countries. It answers the question,

“How many inputs do I need to produce shoes in Mexico?” Comparative advantage asks this same question

slightly differently. Instead of comparing how many workers it takes to produce a good, it asks, “How much am

I giving up to produce this good in this country?” Another way of looking at this is that comparative advantage

identifies the good for which the producer’s absolute advantage is relatively larger, or where the producer’s

absolute productivity disadvantage is relatively smaller. The United States can produce 1,000 shoes with four-
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