A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2023 · Q191 Mark

Country X can produce a product at a lower opportunity cost than country Y. Which term best describes this statement?

Aabsolute advantage

Bcomparative advantage

Cspecialisation

Dterms of trade

✓ Correct answer

B: comparative advantage

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2023 Paper 1 Variant 2, question 19.

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