A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2017 · Q261 Mark

The table shows the ability of two countries to produce two commodities when they use all of their resources for that product. [Table showing country (X, Y), maximum output of rice, and maximum output of wheat] Which statement is correct?

ACountry X has an absolute advantage in wheat.

BCountry Y has an absolute advantage in wheat.

CCountry X has a comparative advantage in wheat.

DCountry Y has a comparative advantage in wheat.

✓ Correct answer

C: Country X has a comparative advantage in wheat.

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2017 Paper 1 Variant 2, question 26.

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