Fig. 1 shows a simplified production process at a solar-panel factory. Silicon cells are combined with glass and frames before panels are packaged for expor...

Assessment: Economics 9214 | Paper 2 Mock 01 | Written Paper 2 Subject: Economics - 9214

Question 1 Report

Fig. 1 shows a simplified production process at a solar-panel factory. Silicon cells are combined with glass and frames before panels are packaged for export.

ComponentsAssemblyPackaged panels© EAGLE BEACON GLOBAL

Which stage adds value to the components? [1]

Answer Details

(a) Assembly is the stage that adds value. [1]

Value is added when a business changes inputs into a product that consumers are willing to pay more for. Combining the silicon cells, glass and frames creates a usable solar panel, whereas the components on their own are less finished. Packaging prepares the completed product for export, but the transformation of components into panels occurs at assembly.

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