Economics (AS & A Level) · May / June 2023 · Paper 11 · Question 15

Which statement correctly describes absolute advantage?

1. AIt is when a country has a higher opportunity cost in producing a good than another country.
2. BIt is when a country has a lower wage cost in producing a good than another country.
3. CIt is when the relative prices of exports of a country are greater than the relative prices of its imports.
4. DIt is when a country's output of a good is greater per unit of resource than another country.

As printed in the paper