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O-LevelEconomicsInternational trade and globalisation2281/22 · Oct/Nov 2018 · Q620 Marks

A relatively high proportion of people from the Philippines either work in call centres or abroad. Call centres employ 1.2 million people in the Philippines and account for 8% of the country's Gross Domestic Product. Due to the time difference with the US, the main market for call centre services, many Filipinos have to work at night. The call centres are introducing new technology including robots.

  1. (a)Define Gross Domestic Product (GDP).[2]
  2. (b)Explain two reasons why a person may be willing to work at night.[4]
  3. (c)Analyse how having some of its population working abroad may benefit an economy.[6]
  4. (d)Discuss whether or not advances in technology benefit an economy.[8]

Mark scheme

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

  1. [1] The (total) output/income/expenditure
  2. [1] of a country/economy
  3. [1] A person may lack the skills to gain another job
  4. [1] have no choice
  5. [1] There may be a high unemployment rate
  6. [1] a person will be grateful for any job
  7. [1] Night work may fit in with family circumstances
  8. [1] a person may have to look after children / older relatives during the day
  9. [1] The job may be well paid
  10. [1] compensating for the inconvenience
  11. [1] The job may offer fringe benefits
  12. [1] example e.g. longer holidays
  13. [1] A person may enjoy their job
  14. [1] example
  15. [1] A person may need to earn additional income
  16. [1] to supplement income from day job / to support their family
  17. [1] The workers may send income home
  18. [1] helping to support dependents / raise living standards of dependents
  19. [1] saving on some government benefits having to be paid
  20. [1] They may gain skills abroad
  21. [1] if they return they will increase the productivity of the labour force
  22. [1] may raise output / cause economic growth
  23. [1] reduce firms costs of production
  24. [1] The money they sent back will be an inflow of foreign currency / remittance / primary income
  25. [1] improving the current account position on the balance of payments
  26. [1] May reduce unemployment
  27. [1] if the workers' skills are not in demand at home
  28. Up to 5 marks for why they might:
  29. [1] Advances in technology will raise the quality / productivity of capital / labour
  30. [1] it will increase the output that can be made / cause economic growth / increase GDP
  31. [1] may raise income
  32. [1] Advances in technology can lower costs of production
  33. [1] reduce cost-push inflation
  34. [1] make domestic products more internationally competitive
  35. [1] improve the current account position of the balance of payments
  36. [1] May raise the quality of products produced
  37. [1] raise living standards
  38. [1] make domestic products more quality competitive
  39. [1] improve the position of the current account of the balance of payments
  40. [1] May attract MNCs
  41. [1] Provide employment for certain classes of worker
  42. [1] e.g. skilled
  43. Up to 5 marks for why they might not:
  44. [1] Advances in technology may result in capital equipment that can replace labour
  45. [1] result in unemployment
  46. [1] If workers do not have sufficient skills
  47. [1] they may not be able to get the most out of more advanced equipment
  48. [1] New capital equipment may worsen working conditions
  49. [1] e.g. workers may get eye strain by looking at a screen for long periods of time
  50. [1] May be an opportunity cost (in the short run)
  51. [1] as more resources may have to be devoted to capital goods / R&D
  52. [1] New capital equipment may be expensive
  53. [1] increase firm' costs
  54. [1] may be an opportunity cost if provided by the government

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About this question

Topic
International trade and globalisation, O-Level Economics (syllabus 2281). Structured question, 20 marks.
Source
O-Level Economics, Oct/Nov 2018 Paper 2 Variant 2, question 6.

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