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Economics · Oct / Nov 2021 · Paper 12 · Question 27

2281Specialisation and free trade

A country specialises in the production of steel, toys and textiles. What is a disadvantage of specialisation for the country's workers?

  1. AThey cannot afford to buy products from other countries.
  2. BThey could become structurally unemployed if global demand changes.
  3. CThey have to learn a variety of skills.
  4. DThey have too much choice which wastes their time.

As printed in the paper

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Correct answer: B. They could become structurally unemployed if global demand changes.

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