Economics 0455 · IGCSE · The nature of the economic problem

The nature of the economic problem — practice question

A small country that exports only oil decides to cut the speed at which it is taking out its finite oil reserves by a large amount. What is the most likely explanation for this decision?

  • Ato improve the balance of payments in the following year
  • Bto increase current government income
  • Cto maintain future living standards
  • Dto raise the level of employment in the oil industry

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