NYJC_H2_ECONS_Q5

1 | P a g e Question 5 5 It is the economy-wide productivity consequences of technological improvement, not technological improvement per se, that lifts standard of living. Assess the extent to which higher labour productivi ty are likely to improve standard of living in Singapore. [25] Rephrasing the Question (i.e. Unpacking the ISSUE of the question) How far does rising labour productivity affect the SOL in Singapore? Question Requirements: • Explain the 2 different types of SOL namely materi al and non-material SOL. • Explain what is meant by labour productivity. • Explain how higher labour productivity could lead to higher material and non-material SOL in Singapore. [i.e. the effects of higher labour productivity on SOL in Singapore] • Explain how higher labour productivity may not lea d to higher material and non-material SOL in Singapore. • Explain how other factors could be responsible for improving SOL in Singapore. • Evaluate how far higher labour productivity would affect the SOL. Suggested Introduction What is labour productivity? • Labour productivity is measured as output per unit of labour input in a given time period. • Higher labour productivity could be achieved throu gh either (1) a decrease in the quantity of labour to produce the same amount of output or (2) an increase in output through increasing the quantity and quality of capital, land and entrepreneur as well as the quality of labour while ensuring that the number of labour employed remains unchanged or (3) a combination of both. Definition of SOL • The standard of living refers to both the material and non-material aspects of life. o The material SOL measures the quantity and quality of goods and services accruing to each person in the country. Real GDPpc is usually use as a statistic. o The non-material SOL measures the intangibles and focuses on the quality of life . This includes the environment, literacy rates etc Suggested Body THESIS: Higher labour productivity can help to improve SOL Suggested Body 1: Using AD – AS diagram , explain how higher labour productivity could increase real national income through an increase in SRAS, LRAS and AD which in turn increases in material SOL.

2 | P a g e Effects of higher labour productivity on material SOL Higher economy – wide labour productivity through an increase in the efficiency of labour (e.g. Singapore’s electronic manufacturing firm Feinmetall trained its workers are also trained to do more than one task, for instance, in both soldering and needle bending 1.) and increase the quantity of capital to complement its labour (e.g. In 2015, Feinmetall designed and introduced a machine that slashed the time taken by more than half to bend needles used in the manufacturing of probe cards.) This economy-wide labour productivity consequences of technological improvement (as seen from the preamble)