Basic Economic Problem · 4 question types
Past paper frequency (2018 to 2024)
This topic accounts for approximately 6% of your exam marks.
Four factors and their rewards appear occasionally; usually 2 to 4 marks when tested, not on every paper.
Production runs smoothly when factors can be moved between uses. The easier it is to switch a factor from one use to another, the more flexible the economy is.
The mobility of a factor of production is how easily it can be switched between different uses.
Mobility varies by factor:
The syllabus specifically tests two ideas about labour. Examiners want you to distinguish them clearly.
Geographical mobility of labour is the ability and willingness of workers to move location for work (between cities, regions, or countries).
Occupational mobility of labour is the ability of workers to switch between different types of job or occupations.
These are independent. A doctor moving from London to Manchester is geographically mobile but not necessarily occupationally mobile (she is still a doctor). A factory worker who retrains as a software developer is occupationally mobile but may not have moved house at all.
| Factor | Affects mainly | How it limits mobility |
|---|---|---|
| Housing costs | Geographical | High rents in a city make it unaffordable to move there for a job |
| Family ties | Geographical | Children in school, ageing parents to care for, partner's job in the current area |
| Transport links | Geographical | Poor roads or no rail link make it impossible to commute from a cheaper area |
| Immigration rules | Geographical | Visa restrictions stop workers crossing borders for work |
| Language | Geographical (international) | A worker who only speaks one language cannot easily work in another country |
| Skills and qualifications | Occupational | A nurse cannot become a structural engineer without years of retraining |
| Training and retraining | Occupational | Access to evening classes, apprenticeships and government training schemes |
| Age | Both | Older workers are often less likely to move or to retrain |
| Information | Both | Knowing what jobs are available, and where, increases the chance of moving |
A typical 3-mark question on this topic asks the candidate to (1) define geographical mobility, (2) define occupational mobility, and (3) name one specific influence with a brief example. The structure earns one mark per step.
Example — Distinguish between the geographical and occupational mobility of labour. (3 marks)