Economics (AS & A Level) · May / June 2025 · Paper 13 · Question 30

Country X and country Y use the same amount of resources to produce mobile phones and televisions. The table shows how much of each product can be produced if all resources are used to produce that product. | | mobile phones | televisions | |---|---|---| | country X | 500 | 400 | | country Y | 100 | 200 | What can be deduced about absolute advantage and comparative advantage?

1. ACountry X has an absolute advantage in producing mobile phones and a comparative advantage in producing televisions.
2. BCountry X has an absolute advantage in producing televisions and a comparative advantage in producing mobile phones.
3. CCountry Y has an absolute advantage in producing mobile phones and a comparative advantage in producing televisions.
4. DCountry Y has an absolute advantage in producing televisions and a comparative advantage in producing mobile phones.

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