Economics (AS & A Level) · Oct / Nov 2022 · Paper 12 · Question 25

From the same quantity of factors of production, country X and country Y each produce the following units of output. | country | sugar | textiles | |---|---|---| | X | 30 | 20 | | Y | 40 | 10 | Which statement is correct?

1. ACountry X has absolute advantage in the production of both goods.
2. BCountry X has comparative advantage in the production of sugar.
3. CCountry Y has absolute advantage in the production of textiles.
4. DCountry Y has comparative advantage in the production of sugar.

As printed in the paper