The unemployment rate in Wales fell from 8.2% in March 2013 to 6.8% in March 2014. One in four workers in Wales is employed in the public sector. A high proportion of workers are employed in multinational companies, including a Japanese car producer and a South Korean electronics firm.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2016). The mark or mark type is shown in brackets.

1. [2] (a) People without jobs (1) who are willing and able to work (1). Or: Resources not being used (1) to produce goods and services (1).
2. [4] (b) Avoid trade restrictions (1), e.g. will not have to pay tariffs imposed on products (1). Lower transport costs (1) enabling the firm to sell at a lower price (1). Access to cheaper/more skilled labour (1) lowering costs of production/ improve the quality of the products produced (1). Access to cheaper/better quality raw materials (1) lowering costs of production/improve the quality of the products produced (1). Closer contact with foreign consumers (1) enabling the firm to pick up more quickly on changes in demand (1). Possible government subsidies (1) to set up in areas of high unemployment (1). Lower taxes (1) which may increase profits (1).
3. [6] (c) Up to 4 marks for the diagram: • axis correctly labelled in terms of two different products or types of products (1) • the curve or downward sloping line drawn to axes (1) • a production point inside the PPC (1) • a production point on or moving closer to the frontier (1). Up to 3 marks for written comments: • unemployed resources mean an economy is producing inside the PPC (1) • a decrease in unemployment means more resources are being used (1) • greater use of resources increases output (1).
4. [8] (d) Up to 5 marks for why it may be better to work in the public sector: There may be greater job security (1) a government may be reluctant to dismiss workers (1) as it will increase unemployment (1) greater job security may put less pressure on workers (1). Working conditions may be better (1) and wages higher (1) as the government is not profit motivated (1). May be able to enjoy longer holidays (1) if the government is a generous employer (1). Promotion chances may be higher (1) if there is a large public sector (1). May be more able to join a trade union (1) to protect rights (1). May be paid higher pensions (1). Up to 5 marks for why it may be better to work in the private sector: Working conditions/wages may be better in the private sector (1) if firms are competing for workers (1). Private sector firms may earn high profits (1) enabling them to pay high wages/provide good working conditions (1). There may be greater diversity of jobs in the private sector (1), e.g. could work for a small firm (1).