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Card 1 of 28

Why do gains from trade depend on comparative rather than absolute advantage?

A

Comparative advantage identifies the lower opportunity cost, determining which good each country should specialise in.

B

Absolute advantage identifies the lower opportunity cost, determining which good each country should specialise in.

C

Comparative advantage identifies the higher opportunity cost, determining which good each country should specialise in.

D

Absolute advantage identifies the higher opportunity cost, determining which good each country should specialise in.

Card 1 of 28

4.1.2 Specialisation and trade Flashcards

  1. A Level
  2. /Economics
  3. /4.1.2 Specialisation and trade

28 flashcards on Edexcel A A Level Economics 4.1.2 Specialisation and trade: the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3.

Flashcards