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Economics (AS & A Level) · May / June 2026 · Paper 11 · Question 27

9708The reasons for international trade

The table shows different possible outputs of apples and bananas for country X and country Y assuming only two goods are produced and all resources are used to their maximum. | | apples | | bananas | |---|---|---|---| | country X | 100 | or | 80 | | country Y | 50 | or | 25 | Country Y decides to specialise in the production of the good in which it has a comparative advantage. Country X decides to use 75% of its resources to produce the good in which it has a comparative advantage and 25% of its resources to produce the other good. What will be the total output?

  1. Aapples 50, bananas 80
  2. Bapples 75, bananas 45
  3. Capples 75, bananas 60
  4. Dapples 150, bananas 120

As printed in the paper

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Correct answer: C. apples 75, bananas 60

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