Question:

2 In 2020, wages paid to Mexican workers, including those in the primary sector, fell. This fall contributed to a 9% rise in poverty in the country. In the same year, many small and medium-sized firms closed down.

The country also suffered from traffic congestion. Its capital, Mexico City, is the world’s most congested city.
(a) Identify two possible opportunity costs of producing primary sector products. [2]
(b) Explain two policy measures which may reduce poverty. [4]
(c) Analyse how the closure of firms may harm consumers. [6]
(d) Discuss whether or not a government should encourage people to walk to school and work.
[8]

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