CAIE A-Level Economics 6.1.1 Absolute and Comparative Advantage

CAIE A-Level Economics 6.1.1 Absolute and Comparative Advantage
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise using production tables and PPCs to distinguish higher physical output from lower opportunity cost and identify each country's comparative advantage before trade.

How this is tested

  • identify absolute advantage from greater output using the same resources or inputs
  • calculate each opportunity cost before assigning comparative advantage to the lower value
  • recommend specialisation by comparative rather than absolute advantage and test mutual gains

Question 28

[Maximum number: 1]

What is meant by comparative advantage?

A

One country can produce a product at a lower opportunity cost than another country.

B

One country can produce more of a product than another country, using a given level of resources.

C

One country has lower barriers to trade than another country.

D

One country is making more efficient use of factors of production than another country.