The French film industry is subsidised by the government. Some actors receive very high fees. In 2015 it was proposed that, as part of the fee is public money, some of the subsidy should be withdrawn. Discuss what might happen to employment and wages if a subsidy for production were reduced. Use the economic theory of wage determination in perfect and imperfect labour markets to support your answer.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.

1. [18-25] L4 for a thorough critique of the statement and an explanation of the analysis of wage determination with a clear comparison of perfect and imperfect markets. There should be a conclusion and a well-structured answer. (14-17 D&S)
2. [14-17] L3 for a weaker critique of the statement but a competent explanation of imperfect market wage determination. Max L3 without MRP.
3. [10-13] L2 for a correct but undeveloped analysis with only a brief comment and recognition of the range of relevant issues to consider. No real conclusion
4. [1-9] L1 for an answer that shows some knowledge but does not indicate that the question has been fully grasped or where the answer is mostly irrelevant