Economics (AS & A Level) · May / June 2025 · Paper 13 · Question 14

A country depends heavily on the production of an agricultural product, good X. It decides to introduce a buffer stock scheme for good X. The government allocates a fixed amount of money for setting up and running the scheme. In which situation is the scheme least likely to run out of money?

1. Aability of new farmers to start growing good X: easy; cost of storing good X: high; global demand for good X: constant
2. Bability of new farmers to start growing good X: easy; cost of storing good X: low; global demand for good X: rising
3. Cability of new farmers to start growing good X: difficult; cost of storing good X: high; global demand for good X: constant
4. Dability of new farmers to start growing good X: difficult; cost of storing good X: low; global demand for good X: rising

As printed in the paper