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Economics (AS & A Level) · Feb / March 2022 · Paper 12 · Question 27

9708The reasons for international trade

Two countries, X and Y, produce food and drink. The table shows how many hours it takes them to produce one unit of each. | | food | drink | |---|---|---| | X | 10 | 2 | | Y | 20 | 12 | What will be the result if country Y doubles its productivity in the output of drink and both countries produce only one good according to comparative advantage?

  1. AX will continue to produce drink.
  2. BY will produce drink instead of food.
  3. CWorld drink production will rise.
  4. DWorld food production will fall.

As printed in the paper

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Correct answer: A. X will continue to produce drink.

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