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Specialisation and trade

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Question 3

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

CountryMicrochipsSolar Panels
Eldoria16?
Arvalia2015

Country Eldoria has a comparative advantage in Microchips.

What is the missing number from the table?

Any number less than 12

Any number greater than 12

12

Any number less than 15

Specialisation and trade Questions

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