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Economics · May / June 2026 · Paper 12 · Question 13

2281Firms and production

The table gives the labour productivity index (real GDP per hour worked) for a country over a three year period. | | year 1 | year 2 | year 3 | |---|---|---|---| | labour productivity | 100 | 104 | 109 | What is most likely to have caused the changes in labour productivity over the period shown?

  1. Acapital spending has fallen
  2. Bthe workforce has become more skilled
  3. Cthe level of employment has increased
  4. Dmarkets have become less competitive

As printed in the paper

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Correct answer: B. the workforce has become more skilled

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