Economics (AS & A Level) · May / June 2023 · Paper 13 · Question 23

Country X and country Y each allocate half of their resources towards the manufacturing of shoes, and the other half towards the manufacturing of t-shirts. Resources can be used equally effectively in the production of both products in both countries. The table shows the output of shoes and t-shirts produced by both countries using half their resources in each case, before specialisation. country | shoes | t-shirts X | 4 000 | 12 000 Y | 2 000 | 8 000 total | 6 000 | 20 000 What can be concluded from the data?

1. AThe opportunity cost of country Y producing two shoes is four t-shirts.
2. BThe opportunity cost of country X producing one t-shirt is four shoes.
3. CThe total output of shoes and t-shirts after specialisation would be 24 000.
4. DThe total output of shoes and t-shirts after specialisation would be 28 000.

As printed in the paper