The table below shows the number of labour hours required to produce one unit of wind turbines and one unit of solar panels in Alfaland and Betaland:
| Country | Wind Turbines (hours per unit) | Solar Panels (hours per unit) |
|---|---|---|
| Alfaland | 6 | 3 |
| Betaland | 10 | 8 |
Based on this information, which of the following statements is correct?
Alfaland has a comparative advantage in both wind turbines and solar panels.
Betaland has a comparative advantage in wind turbines, and Alfaland has a comparative advantage in solar panels.
Alfaland has a comparative advantage in wind turbines, and Betaland has a comparative advantage in solar panels.
Betaland has an absolute advantage in solar panels, and Alfaland has a comparative advantage in wind turbines.
35 exam-style questions on OCR A Level Economics Specialisation and trade. Each one has a worked solution and a mark scheme showing where the marks go.