DP Economics
Question 20N.3.HL.TZ0.2g
| Date | November 2020 | Marks available | [Maximum mark: 4] | Reference code | 20N.3.HL.TZ0.2g |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Explain | Question number | g | Adapted from | N/A |
g.
[Maximum mark: 4]
20N.3.HL.TZ0.2g
A worker in Country J can produce either 12 kilograms (kg) of rice or 4 kg of wheat per hour. A worker in Country H can produce either 14 kg of rice or 7 kg of wheat per hour.
(g)
Explain two gains from trade that arise when Country J and Country H specialize according to comparative advantage.
[4]
Markscheme
Examiners report
Many candidates did not recognise the most important outcome of specializing according to comparative advantage, namely that global output is higher and as a result both countries, even those with an absolute disadvantage in both goods, are able to consume outside their PPCs. Candidates tended to describe general gains from trade without any focus on the importance of comparative advantage.
