O-LevelEconomicsThe allocation of resources2281/11 · Oct/Nov 2011 · Q81 Mark

Drought in African countries often results in poor harvests. Other countries then help by sending quantities of food. What are the likely results of these events for the price of food in the drought-affected countries?

AIt will fall and then rise.

BIt will rise and continue to rise.

CIt will rise and remain at this higher level.

DIt will rise and then fall.

✓ Correct answer

D: It will rise and then fall.

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2011 Paper 1 Variant 1, question 8.

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