Economics (AS & A Level) · Oct / Nov 2021 · Paper 11 · Question 23
9708The reasons for international trade
Country X and country Y both produce rice and tables. Half of their resources are used to produce rice and the other half to produce tables. The resulting output of each product is given in the table shown. What can be concluded from the table?
- ACountry X has a comparative advantage in the production of both goods.
- BCountry X has a comparative advantage in the production of rice.
- CCountry Y has a comparative advantage in the production of both goods.
- DCountry Y has a comparative advantage in the production of rice.
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Correct answer: D. Country Y has a comparative advantage in the production of rice.
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