This document consists of 3 printed pages and 1 blank page.
SP (NF) S57134/3
© UCLES 2004
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education Advanced Level
Paper 4 Data Response and Essay (Supplement)
2 hours 15 minutes
READ THESE INSTRUCTIONS FIRST
If you have been given an Answer Booklet, follow the instructions on the front cover of the Booklet.
Write your Centre number, candidate number and name on all the work you hand in.
Write in dark blue or black pen on both sides of the paper.
You may use a soft pencil for any diagrams, graphs or rough working.
Do not use staples, paper clips, highlighters, glue or correction fluid.
Answer Question 1 and any two questions from Section B.
At the end of the examination, fasten all your work securely together.
The number of marks is given in brackets [ ] at the end of each question or part question.
You may answer with reference to your own economy or other economies that you have studied where
relevant to the question.
Answer this question.
The following is adapted from an article which appeared in a newspaper in August 2002.
Lower earnings in the US could endanger economic recovery.
Although the recession has ended, the wage rates of more than 100 million workers in the US
below management level have remained unchanged for over a year, and this is endangering
consumer spending. The effect on spending is particularly noticeable because there has been a
loss of overtime hours, which has decreased earnings. In addition, 1.7 million jobs have been lost
in the past year and the unemployment rate is now 5.9%.
Employers faced with falling profits have cut their costs. They have stopped paying for health
insurance for their employees. These charges are now deducted from their employees’ earnings,
which further reduces consumer spending. Some workers have tried to resist downward pressure
on their earnings. 2700 workers in a food co