Economics (AS & A Level) · May / June 2023 · Paper 12 · Question 26

The world consists of two countries, M and N. The graphs show their production possibilities for wheat and rice. Countries M and N operate on their production possibility curves and, before specialisation, country M produces 60 units of wheat and country N produces 30 units of wheat. What will be the change in the world output of rice if both countries decide to specialise according to comparative advantage?

1. AIt will fall by 5 units.
2. BIt will fall by 30 units.
3. CIt will rise by 5 units.
4. DIt will rise by 30 units.

As printed in the paper