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

International trade and free trade — practice question

(a)[10]

Explain the distinction between absolute and comparative advantage.

(b)[10]

Discuss whether the principle of comparative advantage offers a convincing explanation of the trade pattern of an economy you know well.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Definitions of the terms (absolute and comparative advantage)

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