Question:

2 Shenzhen, once a fishing village, is now one of China’s richest cities with a large secondary
sector. This transformation was possible as local villages shared resources to develop their area.
For example, they constructed new housing to rent to migrants working in the factories in the city.
However, the supply of housing has not been able to keep up with demand and the government is
now setting a maximum price on housing.
(a) Define secondary sector using an example apart from construction. [2]
(b) Explain two key resource allocation decisions. [4]
(c) Analyse why workers may want to migrate to another area. [6]
(d) Discuss whether or not a government should introduce a maximum price on housing. [8]

Sample Answers: