Economics 2281 · O Level · International specialisation

International specialisation — practice question

Study the source material carefully before you answer Question 1. Source material: Chilean cherries Content removed because of copyright restrictions. Relying on only a few products can be hazardous for a country. Content removed because of copyright restrictions. However, there is evidence of market failure and of inequality in the way resources are allocated.
(a)[1]

Calculate Chile’s agricultural output for 2017.

(b)[2]

Identify two disadvantages of specialisation for a country.

(c)[2]

Explain one reason why demand for cherries can be price-elastic.

(d)[4]

Explain how Chile’s population structure is different from Haiti’s population structure.

(e)[4]

Analyse why China purchases most of its cherries from Chile.

(f)[5]

Analyse why Chilean astronomers earn more than Chilean farm workers.

(g)[6]

Discuss whether Chilean consumers would or would not benefit from greater government intervention in the economy.

(h)[6]

Discuss whether the Haitian economy would benefit from fewer people from Haiti working in Chile.

Worked solution & mark scheme

This 30-mark question has a full step-by-step worked solution and mark scheme. One marking point: $11.76bn ; $11 760 000 000 ; $11 760m

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