O-LevelEconomicsThe allocation of resources2281/12 · May/June 2022 · Q211 Mark

The retail trade in a country has unemployed workers in one region and job vacancies in another region. What could explain this?

ACosts of employing workers are lower when there is unemployment.

BIt is more expensive to live in the area where the retail jobs are available.

CRetailing demands the same skills everywhere.

DThe geographical mobility of labour has increased.

✓ Correct answer

B: It is more expensive to live in the area where the retail jobs are available.

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2022 Paper 1 Variant 2, question 21.

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