Author(s): Bradley K. Hobbs, Gerald J. Segal
This paper addresses pedagogical issues pertaining to the principle of comparative advantage. It specifically advocates favoring output per unit of labor approach as opposed to the labor per unit of output for teaching the principle of comparative advantage. The output per unit of labor approach is preferred for its direct connections to opportunity cost, the ability to easily incorporate visual pedagogical tools, its connection to discussions of the role of theory, its ease of understanding, and its potential to increase student retention. The paper provides a specific example of the output per unit of labor approach. Suggestions for further research on the effects of the output per unit of labor approach are also included.