Start learning →

X gives up 2 tea per rice, Y gives up 3 tea per rice. Who has the edge in rice?

ACountry Y
BNeither one
CCountry X
DBoth of them
Answer & Solution
Correct answer: C. Country X
Country X sacrifices only 2 units of tea per unit of rice, which is a lower opportunity cost than 3.
Practise this question with Quill — CA Foundation →

Keep practising International Trade

Browse all International Trade questions for CA Foundation, or explore more Business Economics topics.

Start a International Trade lesson →
Related questions