A country can produce either 40 machines or 200 tonnes of wheat. After specialising in machines, it exchanges 10 machines for 70 tonnes of wheat. Why may exchange be beneficial?
It receives less wheat than the 50 tonnes forgone by producing 10 machines
It removes the need to use factors of production
It receives more wheat than the 50 tonnes forgone by producing 10 machines
It proves that specialisation has no risk
28 exam-style questions on OCR GCSE Economics 2.1 The role of markets, covering 2.1.1 What is a market, 2.1.2 Primary, secondary and tertiary sectors, 2.1.3 Factor and product markets, and 2.1.4 Specialisation and exchange. Each one has a worked solution and a mark scheme showing where the marks go.