Edexcel A Level Economics B
Edexcel A Level Economics B 2.3 Productivity and Efficiency Exam Questions
Free Edexcel A Level Economics B exam questions on 2.3 Productivity and Efficiency, with mark schemes. Covers labour productivity, efficiency types and their importance for firms and the economy.
2.3 Productivity and Efficiency exam questions
1 question pack of real past exam questions with its mark scheme. Answer every question without notes, then mark your answers line by line against the mark scheme.
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A Level Economics Flashcards
Every answer is written in mark scheme wording, so you learn exactly what examiners give marks for. Pick your exam board, then test yourself with the questions on this page.
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About Edexcel A Level Economics B 2.3 Productivity and Efficiency
2.3 links business performance to the wider economy through productivity. Questions often ask why UK productivity matters and how it can be raised.
What you need to know
- Productivity Output per worker or per hour. Higher productivity lowers unit costs.
- Raising productivity Investment in capital, training, technology, better management and motivation.
- Efficiency Productive efficiency (lowest average cost), allocative efficiency (P = MC) and dynamic efficiency (innovation over time).
- Importance Productivity drives competitiveness, wages and long run growth.
Common mistakes in 2.3 Productivity and Efficiency
- Confusing productivity with production.
- Saying higher productivity always means fewer jobs.
- Mixing up productive and allocative efficiency.
Try three 2.3 Productivity and Efficiency exam-style questions
1. Define labour productivity. (2 marks)
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Output (1) per worker or per hour worked (1).
2. Explain one way a firm could increase labour productivity. (2 marks)
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Investing in training (1) improves workers' skills so they produce more output per hour (1).
3. Explain why higher productivity can improve a country's international competitiveness. (3 marks)
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Higher productivity lowers unit labour costs (1), so firms can cut prices or improve quality (1), making exports more attractive abroad (1).
2.3 Productivity and Efficiency FAQs
What does Edexcel A Level Economics B 2.3 cover?
Productivity, how to raise it, and types of efficiency.
What is dynamic efficiency?
Efficiency over time from investment and innovation that lowers costs or improves products.
Why is UK productivity often discussed?
UK productivity growth has been slow compared with some peers, limiting wage and output growth.
Revise this topic with flashcards: A Level Economics Flashcards, with mark scheme answers for Anki and Quizlet.
