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A-LevelEconomicsInternational Trade / Comparative AdvantageOct/Nov 2010Paper 1 Q221 Mark

The table shows how much rice and wheat two countries, X and Y, can grow when divides its resources equally between growing rice and wheat. country X country Y rice (units) 900 m 100 m wheat (units) 300 m 50 m Assume that each country now specialises according to comparative advantage and trades with the other country. Which terms of trade would benefit both countries?

A1 wheat = 5 rice
B1 wheat = 3 rice
C1 wheat = 2.5 rice
D1 wheat = 2 rice

✓ Correct Answer

The correct answer is C: 1 wheat = 2.5 rice

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Economics Question

Topic

This multiple-choice question tests International Trade / Comparative Advantage in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Oct/Nov 2010 examination, Paper 1 Variant 2.

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