Robots are increasingly used in various areas of production.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.

1. [12] (a) Recognition of technological unemployment as a part of structural unemployment. Substitution of capital for labour leading to higher unemployment. New technology may reduce price of capital relative to labour. An increase in productivity leading to an increased demand for labour. New technology may lead to a fall in prices, higher aggregate demand increasing employment. The contribution of technological unemployment to total unemployment depends on the structural composition of an economy and the level of aggregate demand. Some reference to alternative forms of unemployment.
2. [13] (b) The role of real GDP per capita (pc) as a measure of living standards. Limitations of real GDP pc such as unemployment, distribution of income, education/health/cultural change/hours worked, do the statistics produced reflect economic activity. Use of PPP for international comparisons. Alternative measures of economic welfare: e.g. MEW, HDI, MPI.