Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

Using the same amounts of factors of production, country X and country Y each generate the following output units. Which statement is correct?

  • ACountry X has absolute advantage in the production of both goods.
  • BCountry X has comparative advantage in the production of sugar.
  • CCountry Y has absolute advantage in the production of textiles.
  • DCountry Y has comparative advantage in the production of sugar.

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