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

International trade and free trade — practice question

Two countries, X and Y, make food and drink. The table indicates the number of hours needed for each country to produce one unit of each product. What would happen if country Y doubles its productivity in producing drink and both countries specialise in producing just one good based on comparative advantage?

  • AX will continue to produce drink.
  • BY will produce drink instead of food.
  • CWorld drink production will rise.
  • DWorld food production will fall.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI