(Table) Looking at the data for Tom and Joe, what specialization pattern will exist if trade is based on comparative advantage? $$\begin{array} { | l | l | l | }
\hline & \begin{array} { l }
\text { Hours to Produce a } \
\text { Shirt }
\end{array} & \begin{array} { l }
\text { Hours to Produce } \
\text { a Cake }
\end{array} \
\hline \text { Tom } & 5 & 3 \
\hline \text { Joe } & 6 & 4 \
\hline
\end{array}$$

Question

(Table) Looking at the data for Tom and Joe, what specialization pattern will exist if trade is based on comparative advantage? $$\begin{array} { | l | l | l | } 
\hline & \begin{array} { l } 
\text { Hours to Produce a } \
\text { Shirt }
\end{array} & \begin{array} { l } 
\text { Hours to Produce } \
\text { a Cake }
\end{array} \
\hline \text { Tom } & 5 & 3 \
\hline \text { Joe } & 6 & 4 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Tom has a lower opportunity cost for producing cakes, while Joe has a lower opportunity cost for producing shirts, so Tom should specialize in cakes and Joe in shirts.

(Table) Looking at the Data for Tom and Joe, What