Economics (AS & A Level) · May / June 2026 · Paper 31 · Question 27

Country J is a low-income country that specialises in growing and exporting coffee beans. It receives a money loan from a high-income country. It has to decide how to spend this money. Which choice of spending will be most likely to reduce the external debt of country J in the short run?

1. Abuying better fertilisers and machines for growing coffee beans
2. Bpaying higher wages to the workers growing coffee beans
3. Cproviding better housing for workers growing coffee beans
4. Dsetting up a buffer stock scheme for coffee bean farmers

As printed in the paper