CAIE A-Level Economics AS 6.1.2 Specialisation and Free Trade Questions

Practise explaining specialisation and free-trade benefits, including trading possibility curve analysis, with CAIE Economics AS questions.

Exam points

Explain the benefits of specialisation and free trade, including gains shown with a trading possibility curve.

[Maximum number: 1]

Countries X and Y both produce goods M and N . They decide to specialise and trade freely in the goods.

Under which conditions are the gains from specialisation and free trade likely to be smallest?

mobility of factors of
production between
goods M and N

mobility of factors of
production between
countries X and Y

high

low

high

low

All question bank results loaded

CAIE A-Level Economics AS 6.1.2 Specialisation and Free Trade Questions question 1