A-LevelEconomicsInternational TradeMay/June 2012Paper 1 Q201 Mark
The diagram shows the production possibility curves for two countries, X and Y. [Figure 20.1] A decrease in productivity moves country X's production possibility curve from X₁ to X₂. Which statement is correct?
AAfter the change X would export raw materials and import manufactured goods.
BAfter the change there is no economic basis for trade.
CBefore the change Y had an absolute advantage in the production of raw materials.
DBefore the change X had a comparative advantage in both products.
✓ 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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