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Paper 3 question on exchange rates and merit goods

IB Economics Paper 3 includes two compulsory questions. This is a sample Paper 3 question. The time allowed for Paper 3 is 105 minutes, so students should spend 52.5 minutes on each question. This Paper 3 style question is on exchange rates and merit goods. A student from Mumbai wins a place at an American university at the market exchange rate of 64 Rupees = 1 US$. The expenses of studying in America include an annual...

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