A region has attracted many firms that manufacture medical equipment. Specialist suppliers and a pool of trained workers have grown around the industry, and manufacturers have expanded their output. Most local jobs and suppliers now depend on this industry.
Which statement best describes the likely effects of this specialisation on the region?
The local cluster can raise firms' costs, while reliance on one industry gives the region a wider range of jobs
The local cluster can lower firms' costs, while reliance on one industry makes local suppliers less important
The local cluster can raise workers' skills, while reliance on one industry makes those skills easier to transfer
The local cluster can lower firms' costs, while reliance on one industry leaves the region exposed to a decline
76 exam-style questions on OCR GCSE Economics 2.1 The role of markets, covering 2.1.1 What is a market, 2.1.2 Primary, secondary and tertiary sectors, 2.1.3 Factor and product markets, and 2.1.4 Specialisation and exchange. Each one has a worked solution and a mark scheme showing where the marks go.