Question 19M.3.HL.TZ0.2b
| Date | May 2019 | Marks available | [Maximum mark: 2] | Reference code | 19M.3.HL.TZ0.2b |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Outline | Question number | b | Adapted from | N/A |
Country X and Country Y are capable of producing both apples and bananas. Assume a two-country, two-product model.
Country Y has absolute advantage in the production of both apples and bananas, and comparative advantage in the production of bananas.
Outline the reason why Country X should specialize in the production of apples and Country Y should specialize in the production of bananas.
[2]
OFR applies.
Candidates were invariably aware that each country should specialize in the product for which it has a lower opportunity cost, though quite a few implied or even stated that the “lower” opportunity cost referred to the other good (“for apples than bananas”), rather than the other country. However, they did not identify a positive consequence of such specialization.
