Th4.1: Numerical Example One

Question 1

Refer to PP

Look at Graph 10. Who has what advantage in A?

Answer 1

Spain has an absolute advantage over umbrellas whilst the UK has an absolute advantage over cars

Question 2

Refer to PP

Look at Graph 10. What does B show?

Answer 2

Countries not specialising and producing both - spending half their time on each

Question 3

Refer to PP

Look at Graph 10. What does C show?

Answer 3

countries specialising and therefore producing more