Economics · Oct / Nov 2023 · Paper 21 · Question 4
0455
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The question as text
Malaysia once specialised in the production and export of natural rubber. The production of natural rubber was very labour‑intensive. However, despite still being in the top 5 of natural rubber exporters in the world, Malaysia has moved towards producing manufactured goods that use natural rubber instead of just producing and exporting this primary product.
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4(a)[2]
Identify, other than natural rubber, two primary-sector products. e.g. coal, oil, fish, wood, wheat 2 If more than two products are given, consider the first three. Accept process rather than product e.g. fishing.
4(b)[4]
Explain two reasons why a country may change its specialisation. Logical explanation which might include:
Change in quantity / quality of resources (1)discovery of new resources (1)
or new technology (1)
other economies may be more / less efficient in production of certain products (1).
Change in cost of production (1)change in labour costs (1)
e.g. increase in minimum wage (1)
change in capital costs (1)
e.g. cheaper technology (1)
Changes in demand (1)changes in consumer behaviour (1)
change in revenue / profits (1)
Changes in level of competition (1)other countries’ producers may gain a competitive advantage (1). 4 One mark each for each of two reasons identified and one mark each for each of two explanations.
4(c)[6]
Analyse the economic benefits for a country in producing manufactured goods instead of primary sector products. Coherent analysis which might include:
higher price (1)higher output (1)
higher revenues / profits (1)
higher value added (1)
more exports (1)increased total demand (1)
economic growth (1)
higher productivity (1)economies of scale (1)
more demand for workers (1)lower unemployment (1)
may be more skilled jobs (1)
higher income of workers (1)
higher standards of living / reduction in poverty (1)
does not require stock of natural resources (1)skills / technology could be learnt / imported (1)
less dependent on weather changes (1)more stable revenues / income (1)
easier to plan / budget (1)
higher tax revenues for the government (1)higher government spending (1)
more development spending e.g. healthcare services / education services / infrastructure (1)
resulting in higher levels of economic development (1).
4(d)[8]
Discuss whether or not labour-intensive production will harm an economy. In assessing each answer, use the table opposite. Why it might:
labour may cost more than capitallabour may be more unreliable – inefficient / inconsistent.labour may be protected by trade unions – more disruptionslabour may be less productivelabour may need more breaks than machineslabour intensive production may be less cost-effective, reducing international competitiveness. Why it might not:provides high employment levels – high standards of livinglower levels of unemployment – less government spending on unemployment benefitslabour may be more flexible than machines – can change skills / production / more mobilelabour may be able to respond to people / customers more easily. Level Description A reasoned discussion which accurately examines both sides of the economic argument, making use of economic information and clear and logical analysis to evaluate economic issues and situations. One side of the argument may have more depth than the other, but overall both sides of the argument are considered and developed. There is thoughtful evaluation of economic concepts, terminology, information and / or data appropriate to the question. The discussion may also point out the possible uncertainties of alternative decisions and outcomes. 6–8 A reasoned discussion which makes use of economic information and clear analysis to evaluate economic issues and situations. The answer may lack some depth and development may be one-sided. There is relevant use of economic concepts, terminology, information and data appropriate to the question. 3–5 Guidance Level Description There is a simple attempt at using economic definitions and terminology. Some reference may be made to economic theory, with occasional understanding. 1–2 A mark of zero should be awarded for no creditable content.
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