A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2016 · Q261 Mark
Country X can produce apples and plums at lower cost than country Y. Country X can also produce strawberries but it costs more to do so than in country Y. In fact, country X produces only apples and trades them for plums and strawberries from country Y. What economic analysis could explain this pattern of trade? plums strawberries A absolute advantage country X absolute advantage country X B absolute advantage country Y comparative advantage country Y C comparative advantage country Y absolute advantage country Y D comparative advantage country Y comparative advantage country X
Aabsolute advantage country X
absolute advantage country X
Babsolute advantage country Y
comparative advantage country Y
Ccomparative advantage country Y
absolute advantage country Y
Dcomparative advantage country Y
comparative advantage country X
✓ Correct answer
C: comparative advantage country Y absolute advantage country Y
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