In June 2015, trade unions in Argentina pushed for higher wages and lower taxes. In addition to the pressure for bigger wages, the economy was also dealing with several other problems. It was trying to encourage the creation of public limited companies and economic growth.
(a)[2]
Identify two reasons why governments levy taxes.
(b)[4]
Explain two advantages that a business organisation could gain by becoming a public limited company.
(c)[6]
Analyse how tax revenue could rise after a cut in tax rates.
(d)[8]
Discuss whether an economy would gain from a rise in the strength of its trade unions.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “generate government revenue” …