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

International trade and free trade — practice question

Countries X and Y together supply the world with computers and wheat. At present, each country splits its resources evenly between the two goods and achieves the output shown below. How would total output change if each country were to specialise fully in the product for which it has a comparative advantage?

  • Acomputers –1000 units; wheat +1200 units
  • Bcomputers –1000 units; wheat +1600 units
  • Ccomputers +1000 units; wheat +400 units
  • Dcomputers +1000 units; wheat +1600 units

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