A-LevelEconomicsInternational TradeOct/Nov 2020Paper 1 Q231 Mark
The diagram shows the production possibility curves for two economies using all resources. Country X can produce 10 million cars or 20 million bicycles and country Y can produce 20 million cars or 40 million bicycles. Which statement is correct about country X and country Y according to the theory of comparative advantage?
ACountry X and country Y would not gain from free trade.
BCountry X has a lower opportunity cost ratio in producing cars and bicycles than country Y.
CCountry X has an absolute advantage over country Y in the production of both goods.
DCountry Y will have a faster rate of economic growth than country X.
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of international trade within the Economicssyllabus. The examiner's mark scheme requires...
📋 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...
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