Some markets in Belgium are in equilibrium. The country produces a wide range of goods and services with different degrees of price elasticity of demand. The Belgian Government wants the economy to move to a production possibility point beyond its current production possibility curve (PPC). Belgium's scientific industry is one industry which is doing well. Workers in this industry are highly specialised.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2025). The mark or mark type is shown in brackets.

1. [2] Demand equalling supply (2). No shortage (1) no surplus (1). Balance of demand and supply (2).
2. [4] Logical explanation which might include the following. Increase investment (1) devoting more resources to capital goods (1). Encourage immigration (1) increase size of the labour force (1). Land reclamation (1) creating more land on which to e.g. grow crops (1). Increase in education and training (1) raise quality / efficiency / productivity of labour (1). Increase spending on research and development / new technology (1) increase quality / efficiency / productivity of capital (1). Discovery of sources of resources (1) example/enables extra output to be produced (1).
3. [6] Price elasticity of demand is a measure of the responsiveness of demand to a change in price (1). If demand is elastic, a rise in price will cause a greater percentage change in demand (1) may indicate the firm's product has close substitutes / is not a necessity / takes a significant proportion of consumers' incomes (1) may encourage firms to lower price (1) raise revenue (1). If demand is inelastic, a rise in price will cause a smaller percentage change in demand (1) may indicate the firm's product has few substitutes / is a necessity / takes a small proportion of consumers' incomes (1) may encourage firms to raise prices (1) revenue would increase (1).
4. [8] Why they might: may increase productivity may enable workers to work with more advanced technology may lower costs of production may be able to fill promoted posts reduce waste raise quality of output training may be provided by the government at no direct cost for firms. increase workers motivation, reducing labour turnover increase flexibility to cover absences. Why they might not: if the firms provide the training, increase costs / opportunity cost output may fall while workers are being trained training may not be successful trained workers may demand higher wages trained workers may leave to work for other firms – other firms will gain the benefits of the training.