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Specialisation and trade

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Question 7

The table below shows the maximum output of wheat and solar panels Country P and Country Q could produce if they used all of their resources to produce one of these goods.

Wheat (thousand tonnes)Solar Panels (thousand units)
Country P3,0001,500
Country Q12,0003,000

What can be concluded about Country P from the data?

It has an absolute advantage in the production of solar panels

It has a comparative advantage in the production of solar panels

It has a comparative advantage in the production of wheat

It has an absolute advantage in the production of both wheat and solar panels

Specialisation and trade Questions

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