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Specialisation and trade

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Question 2

The table below shows the number of labour hours daily that two countries need to produce one unit of each of two agricultural products. Other factors of production are used in equal quantities in the two countries.

CountryWheatSoybeans
Vlandia6???
Mercia1812

Country Vlandia has a comparative advantage in Soybeans.

What is the missing number from the table?

4

Any number less than 4

12

Any number greater than 12

Specialisation and trade Questions

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