Question 19M.1.SL.TZ1.4a
| Date | May 2019 | Marks available | [Maximum mark: 10] | Reference code | 19M.1.SL.TZ1.4a |
| Level | SL | Paper | 1 | Time zone | TZ1 |
| Command term | Explain | Question number | a | Adapted from | N/A |
Explain the role of improved productivity in achieving economic growth.
[10]
Marks should be allocated according to the paper 1 markbands for May 2013 forward, part A.
Answers may include:
- definition of productivity, improved productivity, economic growth
- diagram to show a shift of short-run aggregate supply (SRAS) to the right and/or long-run aggregate supply (LRAS) to the right or use of a production possibility diagram
- explanation that improved productivity will reduce unit costs of production in the SR and shift the SRAS to the right, leading to an increase in gross domestic product (GDP) and short-run economic growth; and/or an explanation that improved productivity will increase the productive capacity of the economy in the LR, thus shifting LRAS to the right and causing long-run economic growth
- examples of improved productivity in relation to a particular economy.
NB if no explicit and precise understanding of productivity is demonstrated, a maximum of Level 2 should be awarded.
A majority of candidates did not understand the term ‘productivity’. Some were able to explain how it is achieved through technological advances, but few were able to accurately define the term. Some were able to diagram the LRAS curve or PPC curve shifting outwards but could not accurately explain why they were shifting outwards. Examples of improved productivity in relation to a particular economy were almost never given. There was also much confusion between the terms ‘production’ and ‘productivity’.
