CAIE IGCSE Economics 3.4 Firms Topic Practice

Question 1

[Maximum number: 1]

The table shows the patterns of employment in selected industries in two years.

Table for Question 1 — CAIE IGCSE Economics

How did the patterns of employment change between year 1 and year 2 ?

secondary sector

tertiary sector

fell

rose

fell

unchanged

rose

fell

unchanged

rose

Question 2

[Maximum number: 1]

To be able to produce a car tyre, rubber is required.
If a car tyre manufacturer merges with a supplier of rubber, which type of merger is this?

A

conglomerate

B

horizontal

C

internal

D

vertical

Question 3

[Maximum number: 1]

The size of the domestic car industry in Japan has enabled Japanese car producers to be more price competitive than rival car producers.

What is an explanation for this?

A

Economies of scale are present in the Japanese car industry.

B

Managerial problems exist in the Japanese car industry.

C

Productivity is low in Japan.

D

The Japanese car industry is very labour-intensive.

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