Write your name here
Surname Other names
Centre Number Candidate Number
Pearson Edexcel
Level 3 GCE
Economics B
Advanced Subsidiary
Paper 2: The wider economic environment
Monday 22 May 2017 – Morning Paper Reference
Time: 1 hour 30 minutes 8EB0/02
You do not need any other materials. Total Marks
Instructions
• Fill
Use black ink or ball-point pen.
• centrein the boxes at the top of this page with your name,
number and candidate number.
• Answer all questions in Sections A, B and C.
• A– nswer the questions in the spaces provided
there may be more space than you need.
Information
• The total mark for this paper is 80.
• T–heusemarks for each question are shown in brackets
this as a guide as to how much time to spend on each question.
• Calculators may be used.
Advice
• Read each question carefully before you start to answer it.
• Checkanswer
Try to every question.
• your answers if you have time at the end.
Turn over
Turn over
P49601A
©2017 Pearson Education Ltd.
*P49601A0120*
1/1/1/1/1
, Answer ALL questions.
SECTION A
Read the following extracts (A and B) before answering Question 1.
Write your answers in the spaces provided.
Extract A
International Comparisons of Productivity – Final Estimates for 2014
Index: UK=100 2013 2014
140
134 136
127 130 131 131
130
120 117 118
GDP per
hour 111 110
110
worked
102 104
85 84 100 100
100
90
80
Japan UK (=100) Canada Italy G7 ex. UK US France Germany
G7 countries
(Source: adapted from © Office for National Statistics / Crown Copyright)
2
*P49601A0220*
, Extract B
UK’s poor productivity figures show challenge for government
Britain’s productivity gap against the other G7 nations has widened to its largest since
estimates began in 1991 according to official figures. Only Japan in the G7 performed
worse than the UK in 2014 in terms of output per hour worked. Employment in the UK
is at a record high and inflation at a record low, but the challenge for policymakers and
businesses is getting more output out of each hour worked. 5
A spokeswoman for the Department for Business, Innovation and Skills said the
government was “committed to delivering a return to productivity growth which is
the route to raising living standards for everyone in the UK. The reforms set out in our
productivity plan will deliver a change that will increase long term investment in people,
capital and ideas and help to realise the ambitions of hard working people.” In July 2015, 10
the Business Secretary, Sajid Javid, announced a mix of deregulation and government
intervention across housing, apprenticeships, skills, universities, transport and finance
in an effort to address “the economic challenge of our age” – the UK’s poor productivity
performance.
Responding to the latest figures, general secretary of the Trade Union Congress (TUC) 15
Frances O’Grady said, “We need a better economic plan focused on higher public
investment in modern infrastructure and workforce skills. A new round of severe public
service cuts and pay freezes will keep the UK in the slow lane.”
To help tackle the UK’s productivity problem, Jaguar Land Rover (JLR), which exports 80%
of all vehicles it manufactures in the UK, has teamed up with Warwick Manufacturing 20
Group to launch its own Jaguar Land Rover Academy. It will offer training for all
employees from new recruits to more experienced employees. Welcoming the new
academy, Skills Minister Nick Boles said: “Companies like JLR are encouraging talented
people to build life long careers and in turn boost the country’s productivity and
competitiveness.” 25
(Source: adapted from UK’s poor productivity figures show challenge for government,
Katie Allen © GUARDIAN NEWS & MEDIA LIMITED and Jaguar Land Rover teams up
with WMG to launch academy, Enda Mullen © Birmingham Post)
3
*P49601A0320* Turn over
Surname Other names
Centre Number Candidate Number
Pearson Edexcel
Level 3 GCE
Economics B
Advanced Subsidiary
Paper 2: The wider economic environment
Monday 22 May 2017 – Morning Paper Reference
Time: 1 hour 30 minutes 8EB0/02
You do not need any other materials. Total Marks
Instructions
• Fill
Use black ink or ball-point pen.
• centrein the boxes at the top of this page with your name,
number and candidate number.
• Answer all questions in Sections A, B and C.
• A– nswer the questions in the spaces provided
there may be more space than you need.
Information
• The total mark for this paper is 80.
• T–heusemarks for each question are shown in brackets
this as a guide as to how much time to spend on each question.
• Calculators may be used.
Advice
• Read each question carefully before you start to answer it.
• Checkanswer
Try to every question.
• your answers if you have time at the end.
Turn over
Turn over
P49601A
©2017 Pearson Education Ltd.
*P49601A0120*
1/1/1/1/1
, Answer ALL questions.
SECTION A
Read the following extracts (A and B) before answering Question 1.
Write your answers in the spaces provided.
Extract A
International Comparisons of Productivity – Final Estimates for 2014
Index: UK=100 2013 2014
140
134 136
127 130 131 131
130
120 117 118
GDP per
hour 111 110
110
worked
102 104
85 84 100 100
100
90
80
Japan UK (=100) Canada Italy G7 ex. UK US France Germany
G7 countries
(Source: adapted from © Office for National Statistics / Crown Copyright)
2
*P49601A0220*
, Extract B
UK’s poor productivity figures show challenge for government
Britain’s productivity gap against the other G7 nations has widened to its largest since
estimates began in 1991 according to official figures. Only Japan in the G7 performed
worse than the UK in 2014 in terms of output per hour worked. Employment in the UK
is at a record high and inflation at a record low, but the challenge for policymakers and
businesses is getting more output out of each hour worked. 5
A spokeswoman for the Department for Business, Innovation and Skills said the
government was “committed to delivering a return to productivity growth which is
the route to raising living standards for everyone in the UK. The reforms set out in our
productivity plan will deliver a change that will increase long term investment in people,
capital and ideas and help to realise the ambitions of hard working people.” In July 2015, 10
the Business Secretary, Sajid Javid, announced a mix of deregulation and government
intervention across housing, apprenticeships, skills, universities, transport and finance
in an effort to address “the economic challenge of our age” – the UK’s poor productivity
performance.
Responding to the latest figures, general secretary of the Trade Union Congress (TUC) 15
Frances O’Grady said, “We need a better economic plan focused on higher public
investment in modern infrastructure and workforce skills. A new round of severe public
service cuts and pay freezes will keep the UK in the slow lane.”
To help tackle the UK’s productivity problem, Jaguar Land Rover (JLR), which exports 80%
of all vehicles it manufactures in the UK, has teamed up with Warwick Manufacturing 20
Group to launch its own Jaguar Land Rover Academy. It will offer training for all
employees from new recruits to more experienced employees. Welcoming the new
academy, Skills Minister Nick Boles said: “Companies like JLR are encouraging talented
people to build life long careers and in turn boost the country’s productivity and
competitiveness.” 25
(Source: adapted from UK’s poor productivity figures show challenge for government,
Katie Allen © GUARDIAN NEWS & MEDIA LIMITED and Jaguar Land Rover teams up
with WMG to launch academy, Enda Mullen © Birmingham Post)
3
*P49601A0320* Turn over
