O Levels Economics (2281)•2281/12/M/J/22

Explanation
Trade-off in resource extraction Steps:
- Identify the context: Low-income countries permit MNC mining for economic gains but face potential downsides.
- Define conflict: A true benefit-cost conflict pairs a positive outcome with a negative one for the host country.
- Evaluate choices: Scan for pairs where one is a benefit (e.g., economic boost) and the other a cost (e.g., depletion).
- Select match: Choose the option showing clear opposition between gain and loss.
Why A is correct:
- Mining exports improve trade balance by increasing foreign exchange earnings, but minerals are finite, leading to irreversible resource depletion per natural resource economics.
Why the others are wrong:
- B: Both higher employment and MNC training are benefits, with no inherent cost or conflict.
- C: MNC profits represent a cost to the host (outflow of value), but efficient production benefits MNCs more than conflicting with host interests.
- D: Sustainable development and economic growth are aligned positives, not a benefit-cost trade-off.
Final answer: A
Topic: Differences in economic development between countries
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