Table 2 gives data about the economy of country C. Table 2 Year National income per person ($) Inflation (%) Unemployment (%) 2010 650 5 10 2011 640 3 12 2012 600 1.5 18 The economy of country C is in recession. The Government wants to create more jobs by encouraging more businesses to start up. However some pressure groups are against this because they think that more businesses will cause more external (social) costs.

1. (a)What is meant by 'recession'?[2]
2. (b)Identify two possible reasons why national income per person has fallen between 2010 and 2012.[2]
3. (c)Identify and explain two ways that a Government could help new businesses to start up.[4]
4. (d)Identify and explain three external (social) costs that might be caused by an increase in the number of businesses in country C.[6]
5. (e)Do you think that new start-up businesses can be successful in country C? Justify your answer.[6]