A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2021 · Q191 Mark

Compared with Pakistan, Germany has a higher output of pharmaceuticals per unit of resources used. What could explain this?

Athe existence of floating exchange rates

Bthe law of absolute advantage

Cthe Marshall–Lerner condition

Dthe terms of trade

✓ Correct answer

B: the law of absolute advantage

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2021 Paper 1 Variant 2, question 19.

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