Island of Vanuatu
Table 2: Opportunity Costs of
Production/ Comparative Advantage:
How Long It Takes Each Country to Produce Each Good as Compared
to Its Lowest-Cost Good
Industry
Quantity Produced on
Each Island
Fruits and vegetables
50 pounds
Clothing design
25 garments
Chemists
50 prescriptions
Farm equipment
30 machines
Advertising
5 slogans
Science technology
10 innovations
Communication technology
300 phone calls
Energy
1 million kilowatts
Shipping
Opportunity Costs Within
Each Island
Vanuatu
Samoa
Tonga
20 tons
Construction
50 buildings
College education
30 courses
Films
15 scenes produced
Meat and poultry
50 pounds
Recording artists
30 tapings
Printers
100 copies
Total Hours Needed for Production
Numbers for each island tell us how much goods cost to produce compared to other goods
produced on the same island. Circle the lowest number in each row, to show which island
has the lowest opportunity cost—the comparative advantage—for producing that good.
Island of Fiji
Table 2: Opportunity Costs of
Production/ Comparative Advantage:
How Long It Takes Each Country to Produce Each Good as Compared
to Its Lowest-Cost Good
Industry
Quantity Produced on
Each Island
Fruits and vegetables
50 pounds
Clothing design
25 garments
Chemists
50 prescriptions
Farm equipment
30 machines
Advertising
5 slogans
Science technology
10 innovations
Communication technology
300 phone calls
Energy
Shipping
1 million kilowatts
20 tons
Construction
50 buildings
College education
30 courses
Films
15 scenes produced
Meat and poultry
50 pounds
Recording artists
30 tapings
Printers
Opportunity Costs Within
Each Island
Fiji
Samoa
Tonga
100 copies
Total Hours Needed for Production
Numbers for each island tell us how much goods cost to produce compared
to other goods produced on the same island. Circle the lowest number in
each row, to show which island has the lowest opportunity cost—the
comparative advantage—for producing that good.
Table 3: Why Trade
Is Good
Reduction in Hours With Specialization and Trade
Fruits and vegetables
Quantity Produced
on
Each
Island
50 pounds
Clothing design
25 garments
Industry
Chemists
50 prescriptions
Farm equipment
30 machines
Advertising
5 slogans
Science technology
10 innovations
Communication technology
300 phone calls
Energy
1 million kilowatts
Shipping
Construction
20
tons
50 buildings
College education
30 courses
Films
15 scenes produced
Meat and poultry
50 pounds
Recording artists
30 tapings
Printers
100 copies
Total Hours Needed for Production
Hours If the Island With the
Lowest Opportunity Cost
Produces the Good
Table 3: Why Trade is Good
Reduction in Hours With Specialization and Trade
Industry
Quantity Produced on Hours if the Island With the
Each Island
Lowest Opportunity Cost
Produces the Good
Fruits and vegetables
50 pounds
Clothing design
25 garments
Chemists
50 prescriptions
Farm equipment
30 machines
Advertising
5 slogans
Science technology
10 innovations
Communication technology
300 phone calls
Energy
1 million kilowatts
Shipping
20 tons
Construction
50 buildings
College education
30 courses
Films
15 scenes produced
Meat and poultry
50 pounds
Recording artists
30 tapings
Printers
100 copies
Total Hours Needed for Production