Economics (AS & A Level) · May / June 2021 · Paper 12 · Question 24

Two statements are shown. 1 A country can produce a good at a lower opportunity cost than another country. 2 A country can produce a greater quantity of a good for the same quantity of inputs than another country. What do these two statements describe?

1. Aabsolute advantage / comparative advantage
2. Babsolute advantage / the terms of trade
3. Ccomparative advantage / absolute advantage
4. Dthe terms of trade / comparative advantage

As printed in the paper