Seoul, the capital city of the Republic of Korea, is home to many large firms which have very high productivity levels. The Republic of Korea has grown rapidly due to advances in technology and successful supply-side policy measures. However, this rapid economic growth has led to some market failures.

5(a)Production Productivity CostsEasy2 marks

Define ‘productivity’.

5(b)Efficiency Market FailureMedium4 marks

Explain two examples of market failure that may occur in an economy.

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5(c)Supply Side PolicyHard6 marks

Analyse how supply-side policy measures may enable the government to achieve its macroeconomic aims.

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5(d)Employment UnemploymentHard8 marks

Discuss whether or not advances in technology are beneficial for workers.

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