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

Scarcity, choice and opportunity cost — practice question

A country can produce tea at low cost and sell it abroad; fruit is more expensive to grow, but it commands a higher selling price, so some land is changed from tea to fruit. What will certainly occur as a result?

  • AThere will be an increase in specialisation by the country.
  • BThere will be an increase in the imports of tea.
  • CThere will be an opportunity cost of the loss of the tea production.
  • DThere will be production in line with absolute advantage.

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