2 (c)
Issues with increasing minimum wage
• would increase consumption – multiplier effect
• knock on effect eg wages Taylors pay may need to increase
• discourage employers creating jobs
• would increase the incentive effect to find work.
Issues with reducing benefits
• backward multiplier
• turn to crime to fund living
• only works if jobs are available
• increases government resources eg money available to spend elsewhere
Judgement is being made in relation to the conclusion made
A clear judgement is one that follows logically from the arguments raised elsewhere in the
response. The judgment made is unambiguous and realistic with the candidate having articulated
the reason(s) for this particular choice, rather than leaving it to the examiner to infer the reason(s).
