A-LevelEconomicsBasic Economic Ideas and Resource AllocationOct/Nov 2009Paper 1 Q181 Mark
A country has the correct climate for growing tea, which is produced very cheaply and exported. Fruit is also grown, but this costs more as the climate is not as suitable. Fruit can be sold at a higher price than tea so some of the land used for tea is switched to fruit. What will definitely happen as a result?
AThere will be an increase in specialisation by the country.
BThere will be an increase in the imports of tea.
CThere will be an opportunity cost of the loss of the tea production.
DThere will be production in line with absolute advantage.
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of basic economic ideas and resource allocation within the Economicssyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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