Older MCQs might not have the typical A, B, C,
D
choices. They
have choices 1, 2, 3, and a combination of them is the answer. Below is the key that maps such
combinations to the answer.
A
1, 2 and 3 are correct
B
1 and 2 only are correct
C
2 and 3 only are correct
D
1 only is correct
Factors affecting an individual’s choice of occupation – wage and non-wage factors. The influences of demand and supply, relative bargaining power and government policy, including minimum wage. How changes in demand and supply, relative bargaining strengths, discrimination and government policy can all influence differences in earnings between workers whether they are: skilled/unskilled; primary/secondary/tertiary; male/female; private sector/public sector. Definition, drawing and interpretation of diagrams that illustrate the effects of changes in demand and supply in the labour market. Advantages and disadvantages for workers, firms and the economy.
Classification of firms in terms of primary/secondary/tertiary sectors and private/public sector, and the relative size of firms. The advantages and disadvantages of small firms, the challenges facing small firms and reasons for their existence. Internal growth, for example increased market share. External growth, for example mergers. Examples, advantages and disadvantages of different types of mergers: horizontal, vertical, and conglomerate. How internal and external economies and diseconomies of scale can affect a firm/industry as the scale of production changes. Note: detailed knowledge of different types of structure of a firm is not required.
