A-LevelEconomicsThe price system and the microeconomy9708/32 · May/June 2017 · Q181 Mark

In 2015 a company drilling for oil wished to reduce its workforce because of a fall in the price of oil. The workers' trade union opposed the proposal. Which situation would have helped the trade union in the negotiations?

In 2015 a company drilling for oil wished to reduce its workforce because of a fall in the price of oil. The workers' trade union opposed the proposal. Which situation would have helped the trade union in the negotiations? A Capital and labour were close substitutes. B The cost of labour had been a small percentage of total cost. C The demand for oil had been price inelastic. D There had been a large supply of labour.[1]

Mark scheme

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

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Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source: A-Level Economics, May/June 2017 Paper 3 Variant 2, question 18.

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