IB Economics HL 4.1.3 Hl Limits of Comparative Advantage Questions

Answers may include:
- Terminology: comparative advantage
- Explanation: of any limitations, such as it may lead to excessive specialization, specialization according to comparative advantage may not allow necessary structural changes to occur in an economy, viewed as the "rich man's theory" by poorer nations as it mostly benefits the MDCs/MNCs, unrealistic assumptions, eg immobile and fixed factors of production, fixed technology, free trade, an absence of transport costs
- Diagram: PPC diagram to illustrate comparative advantage.

Assessment Criteria

Marks ..... Level descriptor
0:
- The work does not reach a standard described by the descriptors below.
1-2:
- The response indicates little understanding of the specific demands of the question.
- Economic theory is stated but it is not relevant.
- Economic terms are stated but they are not relevant.
3-4:
- The response indicates some understanding of the specific demands of the question.
- Relevant theory is described.
- Some relevant economic terms are included.
5-6:
- The response indicates understanding of the specific demands of the question, but these demands are only partially addressed.
- Relevant economic theory is partly explained.
- Some relevant economic terms are used appropriately.
- Where appropriate, relevant diagram(s) are included.
7-8:
- The specific demands of the question are understood and addressed.
- Relevant economic theory is explained.
- Relevant economic terms are used mostly appropriately.
- Where appropriate, relevant diagram(s) are included and explained.
9-10:
- The specific demands of the question are understood and addressed.
- Relevant economic theory is fully explained.
- Relevant economic terms are used appropriately throughout the response.
- Where appropriate, relevant diagram(s) are included and fully explained.