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.
- (a)Define Gross Domestic Product (GDP).[2]
- (b)Explain two reasons why a person may be willing to work at night.[4]
- (c)Analyse how having some of its population working abroad may benefit an economy.[6]
- (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] The (total) output/income/expenditure
- [1] of a country/economy
- [1] A person may lack the skills to gain another job
- [1] have no choice
- [1] There may be a high unemployment rate
- [1] a person will be grateful for any job
- [1] Night work may fit in with family circumstances
- [1] a person may have to look after children / older relatives during the day
- [1] The job may be well paid
- [1] compensating for the inconvenience
- [1] The job may offer fringe benefits
- [1] example e.g. longer holidays
- [1] A person may enjoy their job
- [1] example
- [1] A person may need to earn additional income
- [1] to supplement income from day job / to support their family
- [1] The workers may send income home
- [1] helping to support dependents / raise living standards of dependents
- [1] saving on some government benefits having to be paid
- [1] They may gain skills abroad
- [1] if they return they will increase the productivity of the labour force
- [1] may raise output / cause economic growth
- [1] reduce firms costs of production
- [1] The money they sent back will be an inflow of foreign currency / remittance / primary income
- [1] improving the current account position on the balance of payments
- [1] May reduce unemployment
- [1] if the workers' skills are not in demand at home
- Up to 5 marks for why they might:
- [1] Advances in technology will raise the quality / productivity of capital / labour
- [1] it will increase the output that can be made / cause economic growth / increase GDP
- [1] may raise income
- [1] Advances in technology can lower costs of production
- [1] reduce cost-push inflation
- [1] make domestic products more internationally competitive
- [1] improve the current account position of the balance of payments
- [1] May raise the quality of products produced
- [1] raise living standards
- [1] make domestic products more quality competitive
- [1] improve the position of the current account of the balance of payments
- [1] May attract MNCs
- [1] Provide employment for certain classes of worker
- [1] e.g. skilled
- Up to 5 marks for why they might not:
- [1] Advances in technology may result in capital equipment that can replace labour
- [1] result in unemployment
- [1] If workers do not have sufficient skills
- [1] they may not be able to get the most out of more advanced equipment
- [1] New capital equipment may worsen working conditions
- [1] e.g. workers may get eye strain by looking at a screen for long periods of time
- [1] May be an opportunity cost (in the short run)
- [1] as more resources may have to be devoted to capital goods / R&D
- [1] New capital equipment may be expensive
- [1] increase firm' costs
- [1] may be an opportunity cost if provided by the government
Write your answer and get it marked
On Oracle Prep you can write or photograph your own answer and have it marked by AI against this mark scheme, with feedback on what you missed.
Sign up free →