Economics 0455 · IGCSE · Firms’ costs, revenue and objectives
Firms’ costs, revenue and objectives — practice question
Canada’s private sector firms have several different objectives. The amount and the quality of land used by these firms, including farms, has risen. There has also been greater investment, with firms purchasing more capital goods. In 2021, the Canadian government promoted higher investment and wanted to stop unemployment from rising.
(a)[2]
Identify two objectives that private sector firms may have.
(b)[4]
Explain one cause of an increase in the quantity of land and one cause of an increase in land quality.
(c)[6]
Analyse the effect that an increase in investment may have on unemployment.
(d)[8]
Discuss whether a government ought to try to stop unemployment from rising.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Maximising profit” …