Economics (AS & A Level) · Oct / Nov 2023 · Paper 11 · Question 20
9708The reasons for international trade
The diagram shows the production possibility curves (PPCs) for country X and country Y, the only two countries in the world. Both countries produce just two goods, M and N. Under which terms of trade will both country X and country Y benefit from trading with each other?
- A1M for 0.75N
- B1M for 0.8N
- C1M for 1N
- D1M for 2N
As printed in the paper
Show the answer
Correct answer: B. 1M for 0.8N
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.