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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: There will be an opportunity cost of the loss of the tea production.

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Economics Question

Topic

This multiple-choice question tests Basic Economic Ideas and Resource Allocation in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Oct/Nov 2009 examination, Paper 1 Variant 2.

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