International Trade Practice Questions | O-Level Economics

International Trade

Question 1 of 30

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Country X can produce either 10 tons of wheat or 5 tons of cloth per day with the same resources. Country Y can produce either 12 tons of wheat or 12 tons of cloth per day with the same resources. Which pattern of specialization best reflects comparative advantage?

Select one option.

X specializes in wheat; Y specializes in wheat
X specializes in cloth; Y specializes in cloth
X specializes in wheat; Y specializes in cloth
X specializes in cloth; Y specializes in wheat
No trade gains are possible because Y has absolute advantage in both goods

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