IB Economics HL 4.1.4 Trade quantity and value calculations Question Bank
Practise IB Economics HL 4.1.4 by applying trade quantity and value calculations concepts to exam-style questions.
- Syllabus
- First assessment 2022
- Course
- Economics HL
- Level
- HL
Exam points
- identify the relevant model, concept or evidence
- apply the correct subject framework to the question
- evaluate the result using clear evidence and subject terminology
4.1.4 (HL)—Trade quantity and value calculations question 1
[Maximum number: 2]
Country X and Country Y are capable of producing both apples and bananas. Assume a two-country, two-product model.
Country Y has absolute advantage in the production of both apples and bananas, and comparative advantage in the production of bananas.
Calculate the change in expenditure on imported oranges as a result of the increase in demand.
100000×2−40000×2
Any valid working is sufficient for [1].
NB Workings which measure market demand, rather than the demand for imports (so the calculation is 160000×2−100000×2 are not valid.
= $120000
An answer of $120 000 or 120000 without any working or with invalid working as exemplified above is sufficient for [1].
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