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Economics (AS & A Level) · Feb / March 2025 · Paper 12 · Question 29

9708The reasons for international trade

The diagram shows the production possibilities for barley and wheat in countries Q and R. What can be concluded?

  1. ACountry Q has a comparative advantage in the production of barley.
  2. BCountry Q has an absolute advantage in producing both goods.
  3. CCountry R has an absolute advantage in the production of barley.
  4. DThere is no comparative advantage.

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Correct answer: B. Country Q has an absolute advantage in producing both goods.

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