Chapter 3 - Exchange and Markets - Exercises - 3.1 Comparative Advantage and Exchange - Page 63: 1.1b

tax return financial statement

Quigley has a comparative advantage in tax returns because only 1/4 financial statement is lost for each tax return while Slokum gives up 1 financial statement for each tax return. Slokum has a comparative advantage in financial statements because on 1 tax return is lost for each financial statement while Quigley gives up 4 tax returns for each financial statement completed.