A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2013 · Q191 Mark

The table shows the ability of two countries, P and Q, to produce two goods, Y and Z. [Table 19.1] Which statement is correct?

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AP has an absolute advantage in Z and Q has a comparative advantage in Y.

BP has an absolute advantage in Z and Q has an absolute advantage in Y.

CP has a comparative advantage in Z and Q has an absolute advantage in Y.

DP has a comparative advantage in Y and Q has an absolute advantage in Z.

✓ Correct answer

C: P has a comparative advantage in Z and Q has an absolute advantage in Y.

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2013 Paper 1 Variant 2, question 19.

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