O Levels Economics (2281)•2281/11/M/J/18

Explanation
MNC contributions to local development Steps:
- Identify the goal: Improve local standard of living through mining operations.
- Evaluate each option: Assess direct benefits to locals like infrastructure, skills, revenue retention, or outflows.
- Link to economics: Standard of living rises via better access, employability, and retained economic gains.
- Select best action: Choose the one providing lasting local infrastructure benefits.
Why A is correct:
- Building roads creates public infrastructure that enhances local transport, trade, and access to markets, directly boosting economic activity and living standards per development economics principles.
Why the others are wrong:
- B: Exporting ore generates revenue but doesn't guarantee local reinvestment or direct benefits.
- C: Skills training helps individuals but is narrower than broad infrastructure gains.
- D: Returning profits overseas drains capital from the local economy, reducing funds for community improvement.
Final answer: A
Topic: Living standards
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