A country has large reserves of oil. It decides to produce a wide range of goods rather than specialise in oil production. What is not an acceptable reason in support of this decision?
A.
Oil is a non-renewable resource that could be exhausted quickly.
B.
Producing a wide range of goods increases the benefits from free trade.
C.
Relying on other countries for vital goods and services makes a country vulnerable.
D.
The price of oil is volatile, making export revenue unstable.
Exam No：0455_m25_qp_12 Year：2025 Question No：27
Answer:
B
Knowledge points:
6.1.1 specialisation at a national level ：The basis for specialisation at national level in broad terms of: superior resource allocation and/or cheaper production methods.
6.1.2 advantages and disadvantages of specialisation at a national level
Solution:
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