Pearson Edexcel Level 3 GCE Economics B Advanced PAPER 3: The economic environment and business. question booklet mark scheme results November 2021

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Answer ALL questions. SECTION A Read the following extracts (A and B) before answering Question 1. Write your answers in the spaces provided. Extract A UK’s productivity crisis The UK has expe... rienced a decline in productivity growth since the financial crisis of 2008. The slowdown has been more acute than in any other western country. –10 0 10 20 30 40 Japan Canada Italy G7 G7 excl. UK US France Germany GDP per hour worked, 2016 (% above/below UK level) Labour productivity is normally measured as the value of goods and services produced for each hour worked. The average UK worker produced 16% less on average than counterparts in other members of the Group of Seven (G7) leading economies in 2016, according to data from the Office for National Statistics. The average French worker produces more by the end of Thursday than their UK counterpart can in a full week. In 1960 the UK had the best productivity in Europe, better than France, West Germany and Italy. UK productivity grew continuously during the next 50 years, but often at a slower pace than comparable countries. Between 1980 and 2008, the UK did become a more efficient economy, notably after reforms introduced by Prime Minister Margaret Thatcher and other changes resulting from UK membership of the EU. In 2016 the Organisation for Economic Co-operation and Development (OECD) found that UK had one of the largest proportions of low-skilled young workers among advanced economies. It also found that young UK workers were no more skilled than older employees, suggesting a high likelihood that weak productivity will be difficult to remedy in the coming years. ....... 1 (a) Discuss the link between productivity and competitiveness in the UK economy. [Show More]

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