Read the source material carefully before answering Question 1. Source material: Gabon's industries and labour force Gabon fact file 2022 GDP $22bn GDP per head $13800 Oil output $6.6bn Unemployment rate 23.2% Youth unemployment rate 38.4% Gabon is a small West African country. Its rainforests reduce air pollution, provide wood for timber production, protect against floods and reduce soil erosion. The Gabonese Government wants to conserve the country's rainforests. It has created some national parks which has increased tourism, affecting the current account of the balance of payments. The Gabonese Government wants to reduce the country's reliance on timber production, oil production and agriculture. The country is Africa's fifth-largest oil producer but its resources of oil are running out. The oil industry causes water pollution. The country has other natural resources, including gold. In 2022, new deposits of gold were found in Gabon. Gabon's agricultural industry employs a high proportion of the country's labour force. [Figure 1.1] shows the literacy rate and the percentage of the labour force employed in agriculture in six selected countries in 2022. 90- Mali 80 70 Gabon Sierra Leone 60 % of labour force 50 employed in 40 agriculture 30 Mauritania • -Tunisia- 20 South-Africa 10- 0 0 30 40 50 60 70 80 90 100 literacy rate (% of those aged 15 and over who can read and write) [Figure 1.1] The literacy rate and the percentage of the labour force employed in agriculture in selected countries in 2022 In recent years, Gabon has experienced a high rate of unemployment among 15-24 year olds. High rates of youth unemployment can result in young people not gaining the skills and experience needed to achieve high productivity. It can also have a harmful effect on their confidence. Some governments pay private sector firms to give work experience to unemployed young people. The quality of this experience can vary. The Gabonese Government wants to develop its textile industry, encouraging firms to grow in size. The output of the industry will be affected not only by possible government support but also by its use of technology and specialisation of workers. Answer all parts of Question 1. Refer to the source material in your answers.

Mark scheme

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

1. [1] 30%.
2. [1] reduce air pollution / pollution / improves air quality
3. [1] protect against floods
4. [1] prevent soil erosion
5. [1] Increase in exports
6. [1] increase trade in services (invisible) surplus / reduces deficit
7. [1] Improves the current account balance surplus / reduces deficit
8. [1] Running out of oil / create a shortage
9. [1] revenue from the industry will decline / employment in the industry will decline / GDP will decline /cause recession / conserve for future generations / may need to import oil / price for oil may rise
10. [1] Oil industry creates water pollution / pollution
11. [1] an external cost / harms health / reduces standard of living / protect the environment / attract tourists
12. [1] Axes correctly labelled – price and quantity or p and q
13. [1] Original demand and supply curves correctly labelled
14. [1] New supply curve shifted to the right
15. [1] Equilibriums – shown by lines P1 and Q1 and P2 and Q2 or equilibrium points marked as E1 and E2
16. [1] Generally, an inverse / negative relationship
17. [1] the higher the literacy rate, the smaller the % of the labour force employed in agriculture
18. [1] South Africa had the highest literacy rate and the lowest % of the labour force employed in agriculture
19. [1] Zambia / Sierra Leone / Mali had the lowest literacy rates and the highest %s of labour force employed in agriculture
20. [1] A high literacy rate may increase the chance of workers gaining jobs in high paid tertiary jobs
21. [1] a low literacy rate may mean workers have to undertake unskilled jobs in agriculture / a high proportion of workers employed in agriculture may mean that high literacy rate is not required
22. [1] Gabon
23. [1] Gabon has a high literacy rate but also a high % of the labour force employed in agriculture
24. [1] Some jobs in agriculture are skilled / secondary and tertiary sectors may be small
25. [1] can enable young workers to develop their skills / raise their productivity
26. [1] increase their confidence / motivation to get a job / get higher paid jobs
27. [1] young people may make mistakes and cost firm money while being trained
28. [1] can increase the chances of young people gaining a job
29. [1] reduce unemployment
30. [1] reduce the cost of unemployment benefits
31. [1] reduce future training costs
32. [1] increase tax revenue
33. [1] leads to economic growth
34. [1] the quality of the work experience may not be good
35. [1] the young may be given unskilled jobs
36. [1] poor working conditions / not regulated
37. [1] opportunity cost [implied]
38. [1] government spending could be used to e.g. improve state education
39. [1] government incurs additional expenditure / raises taxes to pay for it
40. [1] the young may have been employed by the private sector without payment by the government
41. [1] it may reduce the efficiency of private firms
42. [1] reduce their output
43. [1] firms may be corrupt
44. [1] labour economies
45. [1] workers can specialise / increase labour productivity
46. [1] managerial economies
47. [1] employ specialists
48. [1] technical economies
49. [1] using advanced capital equipment
50. [1] buying / purchasing economies
51. [1] receiving a discount as buying in bulk
52. [1] selling economies
53. [1] reducing transport costs
54. [1] marketing economies
55. [1] spreads fixed costs over more output
56. [1] financial economies
57. [1] easier / cheaper to borrow
58. [1] research and development economies
59. [1] introduce new products / new production methods
60. [1] risk bearing economies
61. [1] able to suffer fall in demand for one product or supply problems connected to one product
62. [1] may experience external economies of scale
63. [1] example
64. [1] difficulty of controlling a large firm
65. [1] may be slower to make decisions
66. [1] communication problems
67. [1] may be more difficult to keep everyone informed
68. [1] poor industrial relations
69. [1] may be less contact between managers and workers / decreasing productivity