A-LevelEconomicsInternational economic issues9708/12 · Feb/Mar 2016 · Q261 Mark

In each country, P and Q, one person can either produce the quantity of X or the quantity of Y shown. In which case does country P have absolute advantage in the production of Y and country Q have comparative advantage in the production of X?

Acountry P product X 6 product Y 7, country Q product X 6 product Y 9

Bcountry P product X 10 product Y 8, country Q product X 7 product Y 9

Ccountry P product X 12 product Y 6, country Q product X 8 product Y 4

Dcountry P product X 16 product Y 15, country Q product X 14 product Y 8

✓ Correct answer

D: country P product X 16 product Y 15, country Q product X 14 product Y 8

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Feb/Mar 2016 Paper 1 Variant 2, question 26.

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