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

International trade and free trade — practice question

Under what circumstances will country X possess a comparative advantage in rice production over country Y?

  • Awhen X has lower opportunity costs in producing rice than Y
  • Bwhen X is in a customs union and Y is outside that union
  • Cwhen X uses dollars for trading and Y uses a different currency
  • Dwhen X uses more units of labour than Y to produce rice

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