Canada's private sector firms have a number of different objectives. The quantity and quality of land used by these firms, including farms, has increased. There has also been increased investment with the firms buying more capital goods. In 2021, the Canadian government encouraged higher investment and aimed to prevent a rise in unemployment.

Mark scheme

Marking points from the official mark scheme (May/June 2023). The mark or mark type is shown in brackets.

1. [1] Profit (maximisation);
2. [1] growth / high sales;
3. [1] greater market share / market dominance;
4. [1] survival;
5. [1] improving the environment.
6. [1] Quantity of land may increase due to reclamation; [1] creating land from the sea.
7. [1] Quantity of land may increase due to reduction in overfishing / hunting; [1] restoring stocks of fish / wildlife.
8. [1] Quantity of land may increase due to reduction in flooding; [1] avoiding soil erosion.
9. [1] Quantity of land may increase due to discovery of new natural resources; [1] e.g. of oil.
10. [1] Quality of land may increase due to use of fertilisers; [1] raising productivity / efficiency / fertility of land.
11. [1] Quality of land may increase due to reduction in pollution; [1] preventing damage / diseases.
12. [1] Quality of land may increase due to good weather; [1] raising productivity efficiency / fertility of land.
13. [1] Quality of land may increase due to better equipment / more advanced technology; [1] raising productivity efficiency / fertility of land.
14. [1] An increase in investment may decrease unemployment by increasing spending on capital goods; [1] this increases total demand.
15. [1] Firms may expand their output / new firms may set up / economic growth may occur; [1] this may lead to more workers being needed with the capital equipment / demand for labour may increase / need more workers / increase job opportunities; [1] this can reduce cyclical unemployment.
16. [1] Investment in education / training / healthcare / research and development; [1] can raise productivity / skills; [1] increase mobility; [1] reduce structural unemployment.
17. [1] Investment in infrastructure; [1] increase geographical mobility; [1] reduce structural unemployment.
18. [1] An increase in investment may increase unemployment; [1] as capital goods may replace workers / production may become more capital-intensive / demand for workers may decrease; [1] capital goods can be a substitute for labour; [1] cause technological unemployment.
19. [1] Why it should (prevent rise in unemployment): may increase output / economic growth.
20. [1] Why it should (prevent rise in unemployment): increase tax revenue.
21. [1] Why it should (prevent rise in unemployment): reduce spending on unemployment benefit.
22. [1] Why it should (prevent rise in unemployment): reduce living standards / poverty.
23. [1] Why it should not (prevent rise in unemployment): unemployment may be low.
24. [1] Why it should not (prevent rise in unemployment): reduction in unemployment may cause inflation.
25. [1] Why it should not (prevent rise in unemployment): the resulting higher incomes may cause a current account deficit.
26. [1] Why it should not (prevent rise in unemployment): unemployment can create flexibility.
27. [1] Why it should not (prevent rise in unemployment): opportunity cost of government policy measures.
28. [1] Why it should not (prevent rise in unemployment): a government may have other objectives.