Economics 0455 · IGCSE · Firms’ costs, revenue and objectives
Firms’ costs, revenue and objectives — practice question
Actions taken by the Government of Georgia to cut inflation and unemployment affected business organisations operating in the country during 2015. The country has a growing tertiary sector, including its banking sector, and now shows several features of a market economy.
(a)[2]
Identify two aims that business organisations may pursue.
(b)[4]
Explain two roles carried out by a commercial bank.
(c)[6]
Analyse how the price mechanism affects the allocation of resources in a market economy.
(d)[8]
Discuss whether a rise in output will increase the profits earned by firms.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Maximising profit” …