Economics · May / June 2022 · Paper 21 · Question 3

0455

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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.

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3(a)[2]
Identify two influences on what products a person buys. Two from e.g.: Price (1)
income (1)
tastes / habit / culture (1)
advertising (1)
availability (1)
social media / influencers (1)
quality (1)
government regulations/ laws (1)
age (1). 2 Accept any reasonable example.
3(b)[4]
Explain two ways a government could decrease the consumption of demerit goods. Logical explanation which might include: Impose an (indirect) tax / tariff on goods (1)
raise the price (1). Provide information (1)
about harmful effects (1). Ban / regulate (1)
to stop or reduce the availability of the product (1). Set minimum price above market price (1)
raise prices (1). Import quota (1)
restricts availability for purchase (1). 4 One mark for each of two ways identified and one mark for each explanation.
3(c)[6]
Analyse why workers may join a trade union. Coherent analysis which might include: Understanding of role of trade union (1)
to gain greater bargaining power (1)
through industrial action (1)
to negotiate with employers (1)
for higher wages (1)
better working conditions / health & safety (1)
fringe benefits (1). To represent them (1)
in disputes with employers (1)
e.g., to protect their rights (1)
against unfair dismissal / discrimination (1)
increase job security (1)
compensation for work injuries (1). To gain greater influence on the government (1)
to e.g., increase a national minimum wage (1)
increase job opportunities (1). Unions may provide services to members (1)
training courses (1)
improving health and safety (1)
benefits e.g. discounts at gyms (1)
financial and legal advice (1). 6 Award no marks for examples of industrial action
3(d)[8]
Discuss whether or not tertiary sector workers are paid more than primary sector workers. In assessing each answer, use the table opposite. Why they might be:
may be more skilled / qualified
may be more productive
tertiary products may have higher value added
tertiary products may have higher demand, so industries may have greater ability to pay higher wages. Why they might not be:
may be less likely to belong to a trade union
some workers may be in lower paid jobs e.g., cleaners
some tertiary sector firms / occupations may be declining
some may be less experienced
some may not be in promoted posts
primary sector products may have higher value added e.g., oil
primary sector workers in a developed country may be paid more than tertiary workers in an undeveloped country.
primary jobs may be more dangerous e.g., mining Level Description A reasoned discussion which accurately examines both sides of the economic argument, making use of economic information and clear and logical analysis to evaluate economic issues and situations. One side of the argument may have more depth than the other, but overall, both sides of the argument are considered and developed. There is thoughtful evaluation of economic concepts, terminology, information and / or data appropriate to the question. The discussion may also point out the possible uncertainties of alternative decisions and outcomes. 6−8 Guidance Level Description A reasoned discussion which makes use of economic information and clear analysis to evaluate economic issues and situations. The answer may lack some depth and development may be one- sided. There is relevant use of economic concepts, terminology, information and data appropriate to the question. 3−5 There is a simple attempt at using economic definitions and terminology. Some reference may be made to economic theory, with occasional understanding. 1−2 A mark of zero should be awarded for no creditable content. Note: accept approach that discusses why primary sector workers may be better paid. Define privatisation. Privatisation is the sale of state-owned / public sector firms / public sector assets (1)
to the private sector / investors / individuals (1). 2 Award 1 mark for an understanding of the private sector Accept change / movement / turned from public to private sector

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