Jackie has been reading about international trade and that one nation has the ability to produce a specific product more efficiently than any other nation.She and her friend,Allie,are required to create a PowerPoint presentation for their business class about international trade.Jackie can create animated PowerPoint presentations that clearly and precisely convey the message they need to make,but in a light and entertaining fashion.She is not good at public speaking.Allie is an excellent public speaker and can create equally excellent PowerPoints.Both girls have homework for other classes to do and agree to divide the work-Jackie will create the PowerPoint and Allie will do the verbal and written part of the presentation.What advantage does Allie have over Jackie in making presentations?

Question

Quizplus · Accepted Answer

Allie has a comparative advantage in making presentations because she is a better public speaker compared to Jackie. Comparative advantage refers to the ability of one person or nation to produce a specific good or service at a lower opportunity cost than another person or nation. In this case, Allie's opportunity cost of doing the verbal and written part of the presentation is lower than Jackie's because Allie is a better public speaker while Jackie is better at creating animated PowerPoint presentations. By dividing the work based on their comparative advantages, they can produce a better presentation overall.

Jackie Has Been Reading About International Trade and That One