Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

The diagram shows the production possibility curves for countries S and T, which produce goods X and Y. Countries S and T each specialise in the good for which their opportunity cost is lower. They then trade with one another at a ratio of two good X to one good Y. What is one possible set of goods that country S could consume after specialisation and trade?

  • Agood X 100; good Y 50
  • Bgood X 150; good Y 75
  • Cgood X 200; good Y 100
  • Dgood X 300; good Y 150

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