O-LevelEconomicsThe allocation of resources2281/12 · May/June 2020 · Q81 Mark

Saudi Arabia specialises in oil extraction and refining. This is a capital-intensive industry with highly skilled labour. What might be a disadvantage of this specialisation?

AOil companies have increased training costs as each worker needs many different skills.

BOil companies may find it difficult to achieve economies of scale.

CResource allocation is not efficient because a narrow range of goods is being produced.

DWorkers may face a restricted range of job opportunities.

✓ Correct answer

D: Workers may face a restricted range of job opportunities.

Oracle Prep sorts past-paper questions by topic, so you can drill The allocation of resources and see which topics are most likely to come up next.

Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2020 Paper 1 Variant 2, question 8.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content