A-LevelEconomicsInternational economic issues9708/12 · May/June 2023 · Q261 Mark

The world consists of two countries, M and N. The graphs show their production possibilities for wheat and rice. [Figure 26.1] Countries M and N operate on their production possibility curves and, before specialisation, country M produces 60 units of wheat and country N produces 30 units of wheat. What will be the change in the world output of rice if both countries decide to specialise according to comparative advantage?

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AIt will fall by 5 units.

BIt will fall by 30 units.

CIt will rise by 5 units.

DIt will rise by 30 units.

✓ Correct answer

C: It will rise by 5 units.

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2023 Paper 1 Variant 2, question 26.

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