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A-LevelEconomicsInternational TradeOct/Nov 2019Paper 1 Q231 Mark

The table indicates the factor inputs required to produce wheat and cars in countries X and Y. What makes it possible for both countries to benefit from trade?

ACountry X has an absolute advantage in wheat and car production.
BCountry Y has an absolute advantage in wheat and car production.
CCountry Y has a comparative advantage in wheat production.
DOpportunity cost of wheat and car production is the same between countries.

✓ Correct Answer

The correct answer is C. This question tests the candidate's understanding of international trade within the Economicssyllabus. The examiner's mark scheme requires...

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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

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About This A-Level Economics Question

This multiple-choice question appeared in the Cambridge A-Level Economics (9708) Oct/Nov 2019 examination, Paper 1 Variant 2. It tests the topic of International Trade and is worth 1 mark.

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