Economics 0455 · IGCSE · Workers

Workers — practice question

Read the source information carefully before you answer Question 1. Source information: Gabon’s industries and labour force Gabon is a small country in western Africa. Its rainforests cut air pollution, supply wood for timber production, help to protect against floods and lessen soil erosion. The Gabonese Government wants to protect the country’s rainforests. It has set up some national parks, which has boosted tourism and affected the current account of the balance of payments. The Gabonese Government wants to lower the country’s dependence on timber production, oil production and agriculture. The country is Africa’s fifth-largest oil producer, but its oil reserves are being used up. The oil industry creates water pollution. The country has other natural resources, including gold. In 2022, new gold deposits were discovered in Gabon. A large proportion of Gabon’s labour force works in agriculture. Fig. 1.1 shows the literacy rate and the percentage of the labour force employed in agriculture in six selected countries in 2022. Fig. 1.1 The literacy rate and the percentage of the labour force employed in agriculture in selected countries in 2022. The vertical axis is labelled: "% of labour force employed in agriculture". The horizontal axis is labelled: "literacy rate (% of those aged 15 and over who can read and write)". Countries shown on the figure include: Mali, Sierra Leone, Gabon, Mauritania, Tunisia and South Africa. In recent years, Gabon has had a high unemployment rate among 15-24 year olds. High youth unemployment can mean that young people do not acquire the skills and experience needed to reach high productivity. It can also damage their confidence. Some governments pay private sector firms to provide unemployed young people with work experience. The quality of this experience may vary. The Gabonese Government wants to expand its textile industry by encouraging firms to become larger. Industry output will be influenced not only by possible government support, but also by the use of technology and the specialisation of workers.
(a)[1]

Calculate Gabon’s oil production value as a percentage of Gabon’s GDP.

(b)[2]

Identify two external benefits provided by rainforests.

(c)[2]

Explain what effect a rise in tourism may have on Gabon’s current account of the balance of payments.

(d)[4]

Explain two reasons why the Gabonese Government wants to cut dependence on oil.

(e)[4]

Draw a demand and supply diagram to illustrate how the discovery of new gold deposits affects the gold market.

(f)[5]

Analyse how the literacy rate is related to the percentage of the labour force employed in agriculture.

(g)[6]

Discuss whether or not a government should pay private sector firms to provide work experience for unemployed young people.

(h)[6]

Discuss whether or not a growth in the size of firms in Gabon’s textile industry will reduce their average cost of production.

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