A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2015 · Q191 Mark
The diagram illustrates the production possibility curves for countries S and T producing goods X and Y. Countries S and T specialise in the product for which they have the lower opportunity cost. They trade with each other at the rate of two good X for one good Y. What is a possible combination of goods for country S to consume after specialisation and trade have taken place? [Figure 19.1]
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
Agood X 100, good Y 50
Bgood X 150, good Y 75
Cgood X 200, good Y 100
Dgood X 300, good Y 150
✓ Correct answer
A: good X 100, good Y 50
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