QUESTION 77 (6 marks)
Automation allows a distribution centre to produce 20% more output with the same total labour hours. It also eliminates some routine jobs and creates specialist positions. Evaluate the reform using productivity and employment, distinguishing short- and long-run effects.
Practice marking scheme
Answer
Labour productivity rises 20%, but employment benefits are neither immediate nor evenly distributed.
Working
Output per hour rises 20% because hours are unchanged. Lower unit costs and higher capacity can support competitiveness, demand and future jobs. In the transition, workers with obsolete skills may face structural unemployment while specialist vacancies persist. Retraining and mobility assistance may improve distribution of gains. The workplace evidence alone does not establish a net national employment effect.
Marking criteria
- Calculates the productivity gain. [1 mark]
- Explains capacity/competitiveness benefits. [2 marks]
- Explains structural displacement and a complementary response. [2 marks]
- Qualifies the economy-wide employment conclusion. [1 mark]
Practice question aligned to the current QCAA syllabus; review the worked solution and marking criteria.
View the QCAA syllabusCompare your working with the guide above.