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Economics (AS & A Level) · May / June 2025 · Paper 11 · Question 4

9708Factors of production

In 2020, there was a worldwide pandemic. High-income countries quickly developed a vaccine. Low-income countries built high-tech factories to manufacture large quantities of the vaccine for export. What explains this international division of labour?

  1. Ahigh-income countries: availability of specialists in research and development; low-income countries: lower costs of production
  2. Bhigh-income countries: scarce human resources; low-income countries: over-supply of unskilled labour
  3. Chigh-income countries: many people tended to avoid the disease; low-income countries: many people tended to catch the disease
  4. Dhigh-income countries: no government control over resource allocation; low-income countries: strict government control over resource allocation

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Correct answer: A. high-income countries: availability of specialists in research and development; low-income countries: lower costs of production

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