Question:

3 Canada’s private sector firms have a number of different objectives. The quantity and quality of land
used by these firms, including farms, has increased. There has also been increased investment
with the firms buying more capital goods. In 2021, the Canadian government encouraged higher
investment and aimed to prevent a rise in unemployment.
(a) Identify two objectives of private sector firms. [2]
(b) Explain one reason why the quantity of land may increase and one reason why the quality of
land may increase. [4]
(c) Analyse how an increase in investment may affect unemployment. [6]
(d) Discuss whether or not a government should try to prevent a rise in unemployment. [8]

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