A-LevelEconomicsInternational economic issues9708/12 · May/June 2018 · Q251 Mark

In the diagram, MN is the production possibility curve of a country that has a comparative advantage in the production of good Y. [Figure showing a production possibility curve (PPC) labelled MN, with a point R located outside the PPC.] What might enable the country to consume the quantities of X and Y indicated by point R?

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Areduction in unemployment

Bincreased specialisation in the production of good X

Cincreased specialisation in the production of good Y

Dmore participation in international trade

✓ Correct answer

D: more participation in international trade

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2018 Paper 1 Variant 2, question 25.

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