A-LevelEconomicsInternational economic issues9708/12 · Feb/Mar 2024 · Q241 Mark
The table indicates the factor inputs required to produce wheat and cars in countries X and Y. [Figure 24.1] What makes it possible for both countries to benefit from trade?
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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
C: Country Y has a comparative advantage in wheat production.
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