CourseCourseConceptConceptDocsDocuments

Edexcel A-Level Economics A2 4.3.2 1b Theory of Comparative Advantage the Distinction Between Absolute and Comparative Questions

Practise using production tables and country examples to distinguish absolute from comparative advantage and predict gains from specialisation.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
A2

Exam points

  • use output tables to compare opportunity costs and decide comparative advantage
  • distinguish absolute advantage from comparative advantage in country production data
  • predict the effect of specialisation and trade on world output and living standards

Edexcel A-Level Economics A2 4.3.2 1b Theory of Comparative Advantage the Distinction Between Absolute and Comparative Questions question 1

[Maximum number: 1]

The table shows the maximum production possibilities for Country X and Country Y in a given year.

Table for Question Edexcel A-Level Economics A2 4.3.2 1b Theory of Comparative Advantage the Distinction Between Absolute and Comparative Questions question 1 — Edexcel A-Level Economics A2

Which one of the following can be deduced from this table?

A

Neither country will benefit from specialisation and trade

B

Country X has a comparative advantage over Country Y in the production of bags and shoes

C

Country Y has an absolute advantage over Country X in the production of bags and shoes

D

There is no opportunity cost for either country in producing bags or shoes

All question bank results loaded