In 2020, wages paid to Mexican workers, including those in the primary sector, fell. This fall contributed to a 9% rise in poverty in the country. In the same year, many small and medium-sized firms closed down. The country also suffered from traffic congestion. Its capital, Mexico City, is the world's most congested city.

Mark scheme

Marking points from the official mark scheme (May/June 2024). The mark or mark type is shown in brackets.

1. [1] Secondary sector products / capital goods / manufactured goods.
2. [1] Tertiary sector products / services.
3. [1] Wildlife habitats/quality of the ecosystem.
4. [2] Introduce / increase minimum wage to help low-paid workers / raise income of low-paid workers.
5. [2] Provide state benefits, e.g. unemployment benefit, can enable those who have lost their jobs to purchase basic necessities.
6. [2] Reduce indirect taxation, as tax on goods and services tends to fall more heavily on the poor.
7. [2] Provide education / training to increase earning potential / income / employment opportunities.
8. [2] Job creation schemes / increase jobs in the public sector (e.g. expanding state-owned firms) / increase employment / raise incomes / subsidising private sector firms / lower prices.
9. [2] Reduction in interest rate / expansionary monetary policy encouraging firms to expand / take on more workers.
10. [2] Increase in government spending to increase employment opportunities.
11. [2] Reduce direct taxation / expansionary fiscal policy which may encourage firms to expand and take on more workers / increase disposable income (of the poor).
12. [2] Progressive taxes reduce relative poverty.
13. [2] Provide job information to reduce frictional unemployment.
14. [2] Introduce a maximum price to make necessities more affordable.
15. [1] May reduce competition.
16. [1] increase monopoly power / market share.
17. [1] may result in higher prices.
18. [1] may not innovate / spend on R&D / become inefficient / complacent.
19. [1] lower quality.
20. [1] slower to respond to changes in consumer demand.
21. [1] May mean that consumers have to travel further to purchase products.
22. [1] may take time to find alternatives.
23. [1] there may be a reduction in the range of products available / less choice / less variety.
24. [1] lower quantity / it may not be possible to buy some products.
25. [1] May reduce consumer confidence.
26. [1] lowering quality of life / reduce consumer welfare / living standards.
27. [1] May reduce external economies of scale.
28. [1] example.
29. [1] raise average cost which may raise price.
30. [1] Why it might: may make people healthier.
31. [1] Why it might: may raise productivity.
32. [1] Why it might: may reduce healthcare costs.
33. [1] Why it might: may reduce pollution and traffic congestion.
34. [1] Why it might: may be less need for car parking space.
35. [1] Why it might not: may not be safe.
36. [1] Why it might not: may make people late.
37. [1] Why it might not: may increase stress and lower productivity.
38. [1] Why it might not: may reduce demand for bus and train use.
39. [1] Why it might not: may cause some bus and train drivers to lose their jobs.
40. [1] Why it might not: may restrict job choice due to distance from home.