Changes

:At first I thought had something to do with comparing the efficiencies of the two nations, but really Comparative Advantage compares the efficiency of production between the two products within a nation. That is, compare the two efficiencies of production and choose the more efficiently produced good as your main product. (Addison)

:At first I thought had something to do with comparing the efficiencies of the two nations, but really Comparative Advantage compares the efficiency of production between the two products within a nation. That is, compare the two efficiencies of production and choose the more efficiently produced good as your main product. (Addison)

:It is really a "comparison of the comparisons."  In other words, what really matters is how much more efficiently a nation can produce one good relative to another, compared with how much more efficiently the other nation can produce one good relative to another.  But don't get too tangled up in this detail.  For our purposes any comparison of nations and their production of two goods is likely a question about comparative advantage, and the correct answer is for the cheaper country to produce what it produces best.  (Instructor)

:It is really a "comparison of the comparisons."  What really matters is how much more efficiently a nation can produce one good relative to another good, compared with how much more efficiently the other nation can produce one good relative to another good.  But don't get too tangled up in this detail for purposes of the exam.  Any comparison of nations and their production of two goods on the exam is likely a question about comparative advantage, and the correct answer will almost certainly be for the cheaper country to produce what it produces best.  (Instructor)