(a)[2]
Define ‘a trade union’.
(b)[4]
Explain two influences on the power of a trade union.
(c)[6]
Analyse how wage increases may lead to unemployment.
(d)[8]
Discuss whether a government ought to devalue the country’s exchange rate.
Economics 0455 · IGCSE · Trade unions
Trade unions — practice question
In March 2014, teachers in Argentina went on strike after their unions were unable to agree wage rates. The government proposed a 25% pay rise, but the unions were seeking an increase above the country’s 32% inflation rate. The government argued that very large pay rises would create unemployment. It also said that the economy’s outlook would shortly improve because of its devaluation of the country’s exchange rate at the start of the year.