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

International trade and free trade — practice question

Which option gives the correct description of absolute advantage?

  • AIt is when a country has a higher opportunity cost in producing a good than another country.
  • BIt is when a country has a lower wage cost in producing a good than another country.
  • CIt is when the relative prices of exports of a country are greater than the relative prices of its imports.
  • DIt is when a country’s output of a good is greater per unit of resource than another country.

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