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0.5
5/10 = 0.5.
Class 9 · English Medium · Pearson Edexcel · Economics
Trade, development and data analysis
Analyse trade, development and data with explicit assumptions.
Shared cross-level core and stretch unit. Start with the core questions, then use the stretch example for deeper work. The same unit is available in related class and board pathways; it is not a full grade-specific or examination-specification course. A teacher should select the appropriate depth and further topics.
Learn the idea
Comparative advantage depends on lower opportunity cost, not simply greater output. Trade can expand feasible consumption under a model, but gains can be distributed unevenly. Development includes health, education and living conditions as well as income. A chart association does not establish which change caused another.
Worked example
Country A can make 10 cloth or 5 grain; B can make 6 cloth or 6 grain with the same resource unit. A gives up 0.5 grain per cloth; B gives up 1 grain, so A has comparative advantage in cloth.
- Calculate opportunity costs in the same units.
- Separate aggregate gain from its distribution.
- Check source, period and missing variables.
Stretch example
A currency depreciation changes relative prices, but the trade-balance outcome depends on quantities, elasticities, contracts and timing. A more expensive import price alone does not determine the final balance.
Your written practice
Show your working on paper and enter your answer here. If it does not match, compare the model and try again.
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1
6/6 = 1.
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A
A has the lower grain opportunity cost.
Write in your own words. A guardian or teacher should review this response.
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Demand can shift away from particular industries even if total consumption opportunities expand.
Distinguish total and distributional effects.
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Health and education.
Accept relevant non-income dimensions with explanation.
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220
2 × 110 = 220.
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Existing contracts and delayed demand responses can leave quantities temporarily unchanged while local prices rise.
Explain timing rather than asserting a guaranteed outcome.
Trade argument
Write a balanced paragraph on a fictional trade proposal.
Review with a guardian or teacher
- Use opportunity-cost reasoning.
- Identify a group that might face adjustment costs.
- State evidence needed before policy advice.
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