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

International trade and free trade — practice question

Country X can make apples and plums at a lower cost than country Y. It can also grow strawberries, but doing so is more expensive there than it is in country Y. As a result, country X produces only apples and exchanges them for plums and strawberries from country Y. Which economic theory could account for this trade pattern?

  • Aplums: absolute advantage country X; strawberries: absolute advantage country X
  • Bplums: absolute advantage country Y; strawberries: comparative advantage country Y
  • Cplums: comparative advantage country Y; strawberries: absolute advantage country Y
  • Dplums: comparative advantage country Y; strawberries: comparative advantage country X

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