Economics 2281 · O Level · Economic growth

Economic growth — practice question

In 2023, Canada’s Prime Minister stated that his country’s goal was to raise immigration to half a million each year. This was because the country was facing labour shortages and longer life expectancy. Having more workers in Canada would lift the tax revenue available for pensions, and extra workers would also boost consumer spending. A rise in the immigration of both skilled and unskilled workers could influence the country’s car industry.
(a)[2]

Identify two causes behind an increase in life expectancy.

(b)[4]

Explain two ways a firm could attract skilled workers from overseas.

(c)[6]

Analyse how an increase in consumer spending could raise economic growth.

(d)[8]

Discuss whether the wages paid to workers employed by car firms will rise in the future.

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