CAIE IGCSE Economics 3.5.3 Production and Productivity Questions

Practise Cambridge IGCSE Economics by calculating productivity and analysing how specialisation and technology affect production.

Syllabus
2027–2029
Course
Economics 0455

Exam points

  • Define labour productivity and calculate output per worker or per hour.
  • Explain how specialisation, training and technology increase productivity.
  • Analyse how productivity changes affect firm costs, output and competitiveness.

CAIE IGCSE Economics 3.5.3 Production and Productivity Questions question 1

[Maximum number: 4]

Japan has faced significant periods of deflation in recent decades. Despite efforts to stimulate the economy through fiscal policy measures and monetary policy measures, economic growth remains low. Some economists have also argued that the monetary policy used by the central bank is one of the causes of low productivity in Japan.

Explain two influences on productivity.

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