The average income in Mexico is increasing, yet many people in the country are still poor. Carlos Slim is a Mexican entrepreneur and one of the richest men in the world. His companies dominate the mobile (cell) phone and landline phone markets in the country and employ a large number of specialised workers. However, the Mexican Government is trying to increase competition in the communications market.
(a)[2]
Identify two roles of an entrepreneur.
(b)[4]
Explain two ways in which a government could redistribute income from the rich to the poor.
(c)[6]
Analyse why a monopoly may charge a higher price and produce a lower output than a more competitive market.
(d)[8]
Discuss whether workers gain from specialising.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Taking risks” …