What is most likely to increase the demand for labour in an industry?
a decrease in the price of capital used by the industry
a decrease in the productivity of labour in the industry
an increase in the demand for the industry's product
an increase in the wage paid to labour in the industry
C
A firm chooses to become more capital-intensive.
What is least likely to have increased?
interest rates
minimum wages
the power of trade unions
the productivity of capital
A
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.