Economics

4th form
Questions
Alight Candles is a small firm manufacturing candles in Jamaica. It employs 40 workers, 35 of whom work
on the production line. These 35 workers are paid the minimum wage of $80 per hour. The government
increases the minimum wage to $100 per hour.

a) Suggest three other occupations that the other five workers could perform within the firm. [3]
b) Explain two courses of action that the manager of Alight Candles could take, given the change
in the minimum wage [6]
c) It is suggested that the firm can produce more candles per week. Explain two factors that will
affect this firm’s decision whether or not to do so. [6]
d) Using examples, explain four factors that influence the economic decisions of households. [ [12]
e) How can government influence the economic decisions of firms? [8]