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?
- AX will continue to produce drink.
- BY will produce drink instead of food.
- CWorld drink production will rise.
- DWorld food production will fall.
As printed in the paper
Show the answer
Correct answer: A. X will continue to produce drink.
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.

