Economics 9708 · AS & A Level · International trade and free trade

International trade and free trade — practice question

For each country, P and Q, one person is able to produce either the quantity of X or the quantity of Y indicated. In which situation does country P have absolute advantage in producing Y and country Q have comparative advantage in producing X?

  • AP: X 6, Y 7; Q: X 6, Y 9
  • BP: X 10, Y 8; Q: X 7, Y 9
  • CP: X 12, Y 6; Q: X 8, Y 4
  • DP: X 16, Y 15; Q: X 14, Y 8

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