A-LevelEconomicsInternational economic issues9708/12 · May/June 2021 · Q241 Mark

Two statements are shown. 1 A country can produce a good at a lower opportunity cost than another country. 2 A country can produce a greater quantity of a good for the same quantity of inputs than another country. What do these two statements describe?

Aabsolute advantage ; comparative advantage

Babsolute advantage ; the terms of trade

Ccomparative advantage ; absolute advantage

Dthe terms of trade ; comparative advantage

✓ Correct answer

C: comparative advantage ; absolute advantage

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2021 Paper 1 Variant 2, question 24.

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