In Canada, private sector firms have several different goals. The amount and the quality of land used by these firms, including farms, has risen. Investment has also grown, with firms purchasing more capital goods. In 2021, the Canadian government encouraged greater investment and wanted to stop unemployment from increasing.
(a)[2]
Identify two objectives that private sector firms may have.
(b)[4]
Explain one reason why the quantity of land may rise and one reason why the quality of land may rise.
(c)[6]
Analyse how an increase in investment may affect unemployment.
(d)[8]
Discuss whether a government should 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: “Profit maximisation objective” …