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
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The correct answer is C. This question tests the candidate's understanding of international trade / comparative advantage within the Economicssyllabus. The examiner's mark scheme requires...
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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...
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