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Modal Ans. Section 1 Book Exercises

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18 views

Modal Ans. Section 1 Book Exercises

Model Answer

Uploaded by

muqaddasshahbaz96
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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SECTION 1: MODAL ANSWERS

Chapter 1
b Explain why a car is an economic good. (4)
A car is an economic good as it takes resources to produce it. Among the resources that are
used to produce cars are, for example, machines and workers. The amount of cars produced
depends on the quantity and quality of resources that are used. These resources could be used
to produce other goods and services.

Chapter 2
c Analyse why the mobility of labour may increase over time. (6)
The occupational mobility of labour may increase over time due to better education,
appropriate training and the provision of information about job vacancies. If workers are better
educated, they will gain more qualifications and skills. This will enable them to apply for a
greater range of jobs and will make them more attractive to employers. Unemployed
agricultural workers, for example, could be trained in the skills needed to work in the tourism
industry if there are vacancies in the tourism industry, enabling labour to move from a declining
to an expanding industry. Providing information about job vacancies can make workers aware
of job opportunities more suited to their skills and offering them better pay and working
conditions. This may encourage workers to move from one occupation to another occupation.
Geographical mobility of labor may increase due to factors like improved transportation and
communication, which reduce relocation barriers. Economic opportunities in diverse regions,
along with global labor market integration and educational advancements may encourage
workers to seek opportunities beyond their local areas.

Chapter 3
c Analyse what effect the building of an airport may have on the decision of how to use an
area of land nearby. (6)
The construction of an airport may increase the demand for nearby land due to its potential for
commercial and residential development; for example, firms wanting to operate hotels, firms
producing goods for export and for the air travel and freight industry. However, the opportunity
cost involves comparing the benefits of alternative land uses, such as agricultural or
recreational purposes. If the land is repurposed for airport-related developments, the foregone
benefits from its previous use, like crop production or green space, must be considered. The
area near where an airport is being built may currently be farms or houses. The prospect of the
construction of the airport may reduce the value of the farmland and the houses due to the
expected noise and air pollution.
Chapter 4
c Analyse how a PPC illustrates scarcity, opportunity cost and efficiency. (6)
A PPC shows scarcity as it indicates that there is a limit to what can be produced with given
resources. People would like a combination of the products far to the right of the curve but
there are not enough resources to produce the combination.
A PPC can illustrate opportunity cost as it shows how much of one product has to be given up in
order to produce more of another product. The diagram below shows that the opportunity cost
of producing 20 more units of Product A is 30 units of Product B.

A PPC illustrates efficiency by the relationship between production points and the curve. Any
point inside the curve is inefficient. Potential output is being lost as existing resources are
capable of producing more. Any point on the curve is efficient as maximum use is being made
of the resources and the maximum output is being produced.

Exam Style Questions (TB P 31)


b Analyse, using a PPC, the effect on an
economy of an increase in the supply of labour.
(6)
An increase in the supply of labour will result in a
rise in the quantity of resources. This will
cause an increase in productive potential and will
shift the PPC to the right as shown in the
diagram, where it has moved from AA to BB.
d Discuss whether or not the quantity of labour in the UK is likely to increase in the future. (8)

The quantity of labour may increase in the UK in the future. This is because the size of the
population is increasing. This is partly due to more people being born than dying but more
significantly due to more people of working age coming from countries such as India and
Poland to live and work in the UK. The retirement age has also been increased and is likely to
rise again in the future. More women now enter the labour force. All of these changes have
resulted in an increase in the number of workers in the UK and may continue to do so in the
future. The labour force has also become healthier and this has resulted in fewer working days
being lost through sickness; it increases the quantity of labour, in terms of the number of hours
that people work.

There are, however, reasons to think that the quantity of labour may decrease in the future.
The school leaving age may be raised in a bid to increase the quality of the labour force by
increasing workers’ skills. A higher school leaving age will reduce the working age range. It is
also possible that in the future, more workers may leave the UK to live and work elsewhere
and the UK may experience a net loss of workers to other countries. The quantity of labour, in
terms of the number of hours that people work, may be reduced if workers have longer
holidays or shorter working hours.

There are a number of influences on the quantity of labour that any country has. It is difficult to
forecast exactly what will happen to the UK’s labour force but the likely continuing growth in its
population for at least the next decade or so and further increases in the retirement age mean
it is likely to continue to grow.

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