Economics 9708 · AS & A Level · Scarcity, choice and opportunity cost

Scarcity, choice and opportunity cost — practice question

The table sets out the capability of two countries, P and Q, to make two goods, Y and Z. Which statement is correct?

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

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