The people listed in Fig. 1 work in production. A Martha is a doctor specialising in eye surgery. B Imran specialises in making woven rugs. C Ray owns a mine that produces coal for industry. D Simone builds office buildings in a large city. E Richard specialises in providing nursing services to elderly people. F Lucy owns an advertising agency. [Figure 1] Use the information in Fig. 1 to help you to answer the following questions.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2012). The mark or mark type is shown in brackets.

1. [4] (a) Any two benefits explained x 2 marks or any four points x 1 mark each:
2. • enables each person to concentrate on a particular job
3. • and be an expert in what they are doing as they become more skilled
4. • may increase their output (e.g. Imran) leading to mass production
5. • and be more efficient and produce better quality goods/services
6. • enables greater use of machinery/technology
7. • enables some of them to take advantage of economies of scale
8. • may become known for a particular task e.g. nursing services
9. • may achieve comparative advantage
10. • less time wasted
11. • specially trained leading to higher income/sales/profits.
12. [1] (b)(i) C/Ray
13. [1] (b)(ii) B/Imran or D/Simone.
14. [1] (c)(i) A/Martha or E/Richard
15. [1] (c)(ii) F/Lucy.
16. [3] (d) Any three points x 1 mark each and up to two marks for any well explained point which may include examples:
17. • direct services are services given directly/personally to the people who receive them
18. • these services directly assist the people who receive them
19. • e.g. an architect may design a factory for a manufacturer
20. • commercial services are services that assist trade/distribution to function
21. • e.g. banking, advertising, transport (any one example)
22. • and without which production would find it difficult to take place.
23. [3] (e) Any three ways x 1 mark each: (Definition of trade = 1 mark max.)
24. • Ray will need to sell his coal to various industries/wholesalers/retailers
25. • he will need to buy materials and machinery for his coal mine to function
26. • he will trade in order to make a profit
27. • he may export coal
28. • he may sell his coal mine.
29. [6] (f) Level 2 (4-6 marks) Has discussed whether or not Imran is concerned with Commerce, mentioning trade and some of the aids to trade and has given an opinion. (If only trade or aids to trade is discussed award 4 marks max.)
30. Imran is a manufacturer of rugs. He may employ people, he may work on his own. Commerce may be defined as trade and aids to trade. In order to make a living Imran will need to trade. He will need to sell his rugs for profit and he will have to buy some of the materials for his rug making. In order to trade, he will have to store his completed rugs before they are sold.
31. He may sell to retailers who visit him or directly to consumers. He may need to advertise his rugs for sale. The money he receives will be deposited in a bank for safekeeping and, if he requires finance, he will apply to the bank. He may need to communicate with his suppliers or buyers and he may insure his premises against the risks of fire and theft. If he works on his own, he may not need transport but his buyers will need transport in order to move the rugs to where they are to be used or sold. For these reasons, it is obvious that Imran is heavily involved in Commerce and without commercial services his business would not survive.
32. Level 1 (1-3 marks) Has commented on Imran and any links with Commerce with/without an opinion.
33. Imran makes rugs. He will need to sell them. Any money he makes he may put into a bank. He will need to advertise his rugs for sale. He may need to buy some things to make his rugs.
34. NB Candidates may talk about Imran as the owner of the business or as an employee. A candidate who argues that Imran is not involved in commerce because his main job is manufacturing should receive some credit. He will still have to trade in order to make a living.