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

International trade and free trade — practice question

The table compares the production potential of two countries, P and Q, for the two goods Y and Z. Which statement is correct?

  • AP has an absolute advantage in Z and Q has a comparative advantage in Y.
  • BP has an absolute advantage in Z and Q has an absolute advantage in Y.
  • CP has a comparative advantage in Y and Q has an absolute advantage in Z.
  • DP has a comparative advantage in Z and Q has an absolute advantage in Y.

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