Oil was found in Kenya in 2012, yet by 2014 a US company had abandoned its plans to search for oil in the Arabuko Sokoke forest in the country. The proportions of Kenya’s primary, secondary and tertiary sectors are shifting. The quantity of capital goods in the country is also rising.
(a)[2]
Define the ‘secondary sector’ and provide one example of it.
(b)[4]
Explain two benefits that a country may enjoy as a result of oil being discovered on its land.
(c)[6]
Analyse why the social costs of oil extraction can be higher than the private costs.
(d)[8]
Discuss whether a country would gain from devoting more resources to the production of capital goods.
Worked solution & mark scheme
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