Extract A
Economists can generally agree on the drivers of labour productivity, such as capital investment, education and training, and technological innovation. There is greater debate over the distribution of its benefits. An important part of the discussion is the impact of productivity growth on real wages and employment security. This relationship has become more complex as automation and digital platform work arrangements have expanded. Gross Domestic Product (GDP) per hour worked remains the primary global benchmark for making comparisons.
Supporters of policies to boost productivity growth point to rising competitiveness, potential increases in real incomes, and higher tax revenues to fund public services like healthcare and infrastructure. Opponents of rapid, technology-driven adjustment highlight structural unemployment risk and widening income inequality.
Extract A (line 1) argues: 'Economists can generally agree on the drivers of labour productivity.'
Explain the term 'labour productivity' and analyse two ways in which an increase in labour productivity can be achieved.
156 exam-style questions on AQA A Level Economics 1.4 Production, costs and revenue, covering 1.4.1 Production and productivity, 1.4.2 Specialisation, division of labour and exchange, 1.4.3 The law of diminishing returns and returns to scale (A-level only), 1.4.4 Costs of production, 1.4.5 Economies and diseconomies of scale, 1.4.6 Marginal, average and total revenue, 1.4.7 Profit, and 1.4.8 Technological change (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.