Skip to main content
O-LevelEconomicsGovernment and the macroeconomy2281/21 · May/June 2023 · Q320 Marks

Germany's death rate is higher than some other countries, including Sweden, Cuba and the Maldives. Germany's labour force increased in size between 2011 and 2021 and has become even more productive. The country has also experienced low inflation and a growing surplus on the current account of its balance of payments.

  1. (a)Identify two reasons why death rates may vary between countries.[2]
  2. (b)Explain two causes of an increase in the size of a country's labour force.[4]
  3. (c)Analyse how an increase in labour productivity in a country can increase a surplus on the current account of its balance of payments.[6]
  4. (d)Discuss why some countries may experience lower inflation in the future and some may not.[8]

Mark scheme

Marking points from the official mark scheme (May/June 2023). The mark or mark type is shown in brackets.

  1. [2] Two from differences in: income / standard of living; healthcare; education; nutrition; lifestyles / suicide rates; average age; spread of Covid / infectious diseases; war / conflict; natural disasters; air pollution / water pollution; conditions of work; level of crime.
  2. [4] Logical explanation which might include: Change in the birth rate (1) rise will mean more people of working age in the long run / fall will enable more parents to be in the labour force (1). Immigration (1) many immigrants are of working age (1). Rise in retirement age (1) people will work for longer (1). Fall in school leaving age (1) people will be in education for a shorter period (1). Fall in the death rate / rise in life expectancy (1) fewer people dying before reaching retirement age (1). Changes in social culture (1) allowing more women to work (1). Increase in size of population of working age (1) reason (1). Rise in wage levels (1) attracts people to re-enter the labour market (1).
  3. [6] Coherent analysis which might include: Output per worker (hour) increases (1) may reduce average cost of production (1) lower prices (1) may increase the quality of exports (1). These changes may increase international competitiveness of exports / make exports cheaper (1) demand for exports may increase (1) export revenue may rise (1). Higher relative prices of imports (1) lower relative quality of imports (1) these changes may decrease international competitiveness of imports (1) demand for imports may decrease (1) import expenditure may fall (1). Output increases (1) allowing more exports (1) and less imports (1).
  4. [8] Why some might: advances in technology may reduce costs of production; increases in education and healthcare could raise labour productivity; globalisation may increase international competition; trade union power may fall, lowering wage increases; successful government policy measures e.g. reducing demand. Why some might not: consumers may become optimistic and spend more; governments may increase their spending; the rate of interest may fall; total demand may increase; raw materials may run out; rising cost of energy and rising food prices.

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 →

About this question

Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Structured question, 20 marks.
Source
O-Level Economics, May/June 2023 Paper 2 Variant 1, question 3.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Economics questions

© 2026 Oracle Prep