Two countries, X and Y, produce food and drink. The table shows how many hours it takes them to produce one unit of each. What will be the result if country Y doubles its productivity in the output of drink and both countries produce only one good according to comparative advantage? [Figure 27]
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
✓ Correct answer
A: X will continue to produce drink.
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill International economic issues and see which topics are most likely to come up next.
Sign up free →