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O-LevelEconomicsMicroeconomic decision makers2281/21 · May/June 2022 · Q320 Marks

Trade union membership is much higher in Sweden than in most countries. In 2019, 70% of Swedish workers were members of a trade union. More than 85% of Swedish workers are employed in the tertiary sector, compared with only 2% in the primary sector. Swedish workers spend their incomes on a variety of products some of which, e.g. sweets, are demerit goods. Sweden has the 7th highest per head consumption of sweets in the world.

  1. (a)Identify two influences on what products a person buys.[2]
  2. (b)Explain two ways a government could decrease the consumption of demerit goods.[4]
  3. (c)Analyse why workers may join a trade union.[6]
  4. (d)Discuss whether or not tertiary sector workers are paid more than primary sector workers.[8]

Mark scheme

Marking points from the official mark scheme (May/June 2022). The mark or mark type is shown in brackets.

  1. [1] Price (1)
  2. [1] income (1)
  3. [1] tastes / habit / culture (1)
  4. [1] advertising (1)
  5. [1] availability (1)
  6. [1] social media / influencers (1)
  7. [1] quality (1)
  8. [1] government regulations/ laws (1)
  9. [1] age (1).
  10. [1] Impose an (indirect) tax / tariff on goods (1)
  11. [1] raise the price (1).
  12. [1] Provide information (1)
  13. [1] about harmful effects (1).
  14. [1] Ban / regulate (1)
  15. [1] to stop or reduce the availability of the product (1).
  16. [1] Set minimum price above market price (1)
  17. [1] raise prices (1).
  18. [1] Import quota (1)
  19. [1] restricts availability for purchase (1).
  20. [1] Understanding of role of trade union (1)
  21. [1] to gain greater bargaining power (1)
  22. [1] through industrial action (1)
  23. [1] to negotiate with employers (1)
  24. [1] for higher wages (1)
  25. [1] better working conditions / health & safety (1)
  26. [1] fringe benefits (1).
  27. [1] To represent them (1)
  28. [1] in disputes with employers (1)
  29. [1] e.g., to protect their rights (1)
  30. [1] against unfair dismissal / discrimination (1)
  31. [1] increase job security (1)
  32. [1] compensation for work injuries (1).
  33. [1] To gain greater influence on the government (1)
  34. [1] to e.g., increase a national minimum wage (1)
  35. [1] increase job opportunities (1).
  36. [1] Unions may provide services to members (1)
  37. [1] training courses (1)
  38. [1] improving health and safety (1)
  39. [1] benefits e.g. discounts at gyms (1)
  40. [1] financial and legal advice (1).
  41. [1] may be more skilled / qualified
  42. [1] may be more productive
  43. [1] tertiary products may have higher value added
  44. [1] tertiary products may have higher demand, so industries may have greater ability to pay higher wages.
  45. [1] may be less likely to belong to a trade union
  46. [1] some workers may be in lower paid jobs e.g., cleaners
  47. [1] some tertiary sector firms / occupations may be declining
  48. [1] some may be less experienced
  49. [1] some may not be in promoted posts
  50. [1] primary sector products may have higher value added e.g., oil
  51. [1] primary sector workers in a developed country may be paid more than tertiary workers in an undeveloped country.
  52. [1] primary jobs may be more dangerous e.g., mining

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About this question

Topic
Microeconomic decision makers, O-Level Economics (syllabus 2281). Structured question, 20 marks.
Source
O-Level Economics, May/June 2022 Paper 2 Variant 1, question 3.

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