Q1. [1] medium thorough-understanding
Which of the following best explains why a dense and efficient transport and communication network is considered the 'lifeline' of a nation's economy?
(A) It allows a country to produce a wider variety of goods by introducing new technology.
(B) It enables the movement of goods, people, and information between areas of production and consumption, linking markets.
(C) It ensures that every region of a country achieves equal economic development.
(D) It reduces the need for international trade by making a country self-sufficient.
- A It allows countries to produce goods that they cannot produce themselves.
- B It enables the movement of goods and information between supply and demand locations across the world.
- C It ensures that every country maintains a favourable balance of trade.
- D It restricts trade to local and national levels for better regulation.
Generated by claude-sonnet-4-6 · 2026-06-26 13:35 · grounding rag
Model Answer
(B) It enables the movement of goods, people, and information between areas of production and consumption, linking markets.
Source: Chapter 7, Introduction
Explanation
The passage states that "a dense and efficient network of transport and communication is a prerequisite for local, national and global trade." Goods/services must move from supply to demand locations — making option B the closest match. The other options (equal development, self-sufficiency, new technology) are not supported by the text.