Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

There are two countries, M and N. The graphs illustrate their production possibility frontiers for wheat and rice. Both countries are operating on their production possibility curves and, before specialisation, country M produces 60 units of wheat while country N produces 30 units of wheat. What will be the change in the world output of rice if both countries choose to specialise according to comparative advantage?

  • AIt will fall by 5 units.
  • BIt will fall by 30 units.
  • CIt will rise by 5 units.
  • DIt will rise by 30 units.

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