The table below shows the maximum output of biofuel (thousands of litres) and solar panels (units) that Atlantis and Byzantium can produce if they allocate all of their resources to the production of one of these goods.
| Biofuel (thousands of litres) | Solar Panels (units) | |
|---|---|---|
| Atlantis | 8,000 | 4,000 |
| Byzantium | 12,000 | 15,000 |
What can be concluded from the data?
Atlantis has a comparative advantage in the production of biofuel.
Byzantium has a comparative advantage in the production of biofuel.
Atlantis has an absolute advantage in the production of solar panels.
Byzantium has a comparative advantage in both biofuel and solar panels.
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.