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Economics · Oct / Nov 2025 · Paper 13 · Question 27

2281Specialisation and free trade

What is a likely benefit of increased national specialisation?

  1. AIt guarantees a balance of trade in goods and services surplus.
  2. BIt increases dependency on other economies.
  3. CIt lengthens international supply chains.
  4. DIt reduces the cost of living.

As printed in the paper

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Correct answer: D. It reduces the cost of living.

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