Quelpr
2 marksTrade Theories and Commercial Policy

CSEC Economics · May/June 2015 · Paper 2 · Question 3(d)(i)

Table 2 shows the combinations of agricultural and manufactured products two countries can produce using the same resources.

State, with reason, which country has absolute advantage in the production of the two types of products.

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Other parts of this question

  1. 3(a)(i)Define the term 'Terms of trade'.[2 marks]
  2. 3(a)(ii)Define the term 'Balance of payments'.[2 marks]
  3. 3(b)Name ONE of the three MAIN parts of the balance of payments statement.[1 mark]
  4. 3(c)(i)An increase in international demand for the country's local products[3 marks]
  5. 3(c)(ii)An increase in local demand for imported goods[3 marks]
  6. 3(d)(ii)State, with reason, which country has a comparative advantage in the production of agricultural products.[2 marks]

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