Day: April 8, 2022

The table shows the ability of two countries, P and Q, to produce two goods, Y and Z.

  production of Y per person   production of Z per person

•country P   1000   1600

•country Q   1500   2000

Which statement is correct?

Select ONE answer:

1. P has an absolute advantage in Z and Q has a comparative advantage in Y.
2. P has an absolute advantage in Z and Q has an absolute advantage in Y.
3. P has a comparative advantage in Y and Q has an absolute advantage in Z.
4. P has a comparative advantage in Z and Q has an absolute advantage in Y.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.