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CAIE IGCSE Economics 1.2.2 Quantity & quality of factors of production

Analyse how training, healthcare, migration, investment, reclamation and incentives change the supply or productivity of labour, land, capital and enterprise.

Syllabus
2027–2029
Course
Economics 0455

Exam points

  • Explain how education, training or healthcare can raise the productivity and quality of labour.
  • Link migration, demographic change or land reclamation to the available quantity of factors.
  • Assess how stronger enterprise or better factor quality can affect firms and national output.

1.2.2—Quantity and quality of factors of production question 1

[Maximum number: 8]

Some markets in Belgium are in equilibrium. The country produces a wide range of goods and services with different degrees of price elasticity of demand. The Belgian Government wants the economy to move to a production possibility point beyond its current production possibility curve (PPC). Belgium's scientific industry is one industry which is doing well. Workers in this industry are highly specialised.

Discuss whether or not firms benefit from their workers undertaking training.

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