| Date | November 2021 | Marks available | 10 | Reference code | 21N.1.HL.TZ0.4 |
| Level | Higher level | Paper | Paper 1 | Time zone | Time zone 0 |
| Command term | Explain | Question number | 4 | Adapted from | N/A |
Question
Explain how a better trained and educated labour force might affect economic growth.
Discuss the view that economic growth always leads to rising living standards.
Markscheme
Marks should be allocated according to the paper 1 markbands for May 2013 forward, part A.
Answers may include:
- definition of economic growth, labour (force)
- AD/AS diagram with LRAS shifting to the right or PPC diagram with the production possibilities curve shifting to the right
- an explanation of how improved education and training might lead to increasing productivity and hence economic growth
- examples of countries where improved education and training have possibly affected economic growth.
Marks should be allocated according to the paper 1 markbands for May 2013 forward, part B.
Answers may include:
- definition of economic growth
- AD/AS diagram showing increasing real GDP, negative externality diagram, PPC diagram, poverty cycle diagram or Lorenz curve diagram
- an explanation of the impacts economic growth might have on living standards through changes in employment, tax revenue used to finance government spending, sustainability in resource use and the distribution of income
- examples of cases where economic growth has led to changes in the standard of living
- synthesis or evaluation (discuss).
Discussion may include: the advantages and disadvantages of economic growth, the extent to which economic growth affects different stakeholders and material and non-material aspects of the standard of living, consideration of the word “always”.
NB It should be noted that definitions, diagrams, theory and examples that have already been given in part (a), and then referred to in part (b), should be rewarded.
Examiners should be aware that candidates may take a different approach which, if appropriate, should be rewarded.
Examiners report
Some answers were focused on the effect of increased training and education on aggregate demand and could be significantly improved by addressing the more important effects on short-term and long-term aggregate supply.
A generally well answered question with some excellent examples and discussion that considered a range of positive and negative effects of economic growth on living standards.
