A-LevelEconomicsInternational economic issues9708/12 · May/June 2015 · Q191 Mark

Below are production possibilities for two countries showing their daily production of food and drink, each using the same quantity of resources. [Table 19.1] What can be concluded from the figures?

ACountry X has absolute advantage in food and comparative advantage in drink.

BCountry X has comparative advantage in both goods.

CCountry Y has absolute advantage in drink and comparative advantage in food.

DCountry Y has neither absolute nor comparative advantage.

✓ Correct answer

A: Country X has absolute advantage in food and comparative advantage in drink.

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2015 Paper 1 Variant 2, question 19.

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