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.
Explain two influences on productivity.
Logical explanation which might include the following.
Quality of factors of production (1) better quality improves efficiency / poor quality reduces efficiency (1).
Working conditions / wages (1) influencing worker motivation (1)
technology (1) machine speed / effects on capital productivity (1)
education (1) skilled workers / effects on labour productivity (1).
Healthcare (1) healthier workers capable of producing higher output / sick workers take time off work (1).
Effectiveness of institutions (1) amount of bureaucracy affects efficiency (1)
use of resources (1) whether wasted or used efficiently (1).
4
One mark each for two influences identified and one mark each for two explanations.
If more than two influences are given, consider the first three.
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