IGCSE Economics 0455 May 2023 Paper 2 Variant 1 – Sample Answers and Examiner Commentary – Question 3

Question:

3 Germany’s death rate is higher than some other countries, including Sweden, Cuba and the
Maldives. Germany’s labour force increased in size between 2011 and 2021 and has become
even more productive. The country has also experienced low inflation and a growing surplus on
the current account of its balance of payments.
(a) Identify two reasons why death rates may vary between countries. [2]
(b) Explain two causes of an increase in the size of a country’s labour force. [4]
(c) Analyse how an increase in labour productivity in a country can increase a surplus on the
current account of its balance of payments. [6]
(d) Discuss why some countries may experience lower inflation in the future and some may not.
[8]

Sample Answers:

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