Country X operates a mixed economy, with organisations in both the private and public sectors. These organisations are active in different sectors of economic activity. Over the past 20 years, the primary sector has become less significant in country X’s economy. The changes are summarised in Table 3.1. The government is intending to encourage multinational companies to establish factories in country X.
(a)[2]
Define what is meant by ‘public sector’.
(b)[2]
Define what is meant by ‘gross domestic product’ (GDP).
(c)[4]
Identify four kinds of business organisation in the private sector.
(d)[6]
Using the information in Table 3.1, explain two possible reasons why the primary sector has become less important in country X.
(e)[6]
Do you think the benefits to a country of having a multinational company located there are always greater than the drawbacks? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Businesses owned by the government/state” …