Political & Legal Quiz
Cambridge 9609 - Topic 6.1.2
Section AThe Dictionary Test (AO1)
Precision definitions - 10 marks total
Define 'Privatisation'.
What is the purpose of 'Competition Policy'?
Define 'Minimum Wage Legislation'.
What is a 'Public Corporation'?
Define 'Subsidies'.
Section BStrategic Application (AO2)
Context-driven analysis - 20 marks total
A labour-intensive clothing manufacturer employs 500 low-skilled workers. The government increases the Minimum Wage by 15%. Explain the impact on the firm's costs.
Context: Labour-intensive firm + Minimum wage increase
A pharmaceutical company spends $2bn on R&D annually. The government introduces strict Patent Protection Laws (20-year exclusivity). Explain how this affects the firm's strategy.
Context: High R&D costs + Patent protection
A state-owned railway is Privatised. The new owners prioritise Shareholder Returns over service coverage. Explain the likely impact on rural communities.
Context: Privatisation + Profit motive vs Public service
The government introduces Environmental Protection Laws requiring factories to install $5m pollution filters. Explain the impact on a small manufacturer with limited cash reserves.
Context: SME + High compliance costs
A tech startup operates in a deregulated market (no licensing requirements). The government suddenly introduces strict Industry Licensing costing $500k. Explain the impact on market entry.
Context: Deregulation to Regulation shift
Section CStrategic Evaluation (AO4)
Weighted judgment essays - 60 marks total
Evaluate whether Nationalisation of essential services (water, rail) benefits consumers.
To what extent should governments use Subsidies to support domestic industries facing international competition?
Assess the impact of strict Environmental Regulations on business competitiveness.
Evaluate the argument that increasing the Minimum Wage reduces unemployment.
'Competition Policy that breaks up large firms always benefits consumers.' Discuss.
Examiner's Final Note
Section A: Definitions must be precise. Use technical terminology (e.g., "transfer of ownership" not "selling").
Section B: Always apply to the specific context. Link decisions to financial consequences (VC, FC, margin, ROCE).
Section C: Use AJIM Framework. Reach weighted judgment - avoid "balanced" conclusions. The best answers challenge the question's assumptions and show understanding that optimal policy depends on circumstances, not ideology.
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