ExpertEasy1 markMultiple Choice
AQA GCSE · Question 06 · How markets work
In which jobs are earnings likely to be highest?
In which jobs are earnings likely to be highest?
Answer options:
A.
In those where it is easy to replace workers
B.
In those where workers are paid weekly
C.
In those with an excess supply of labour
D.
In those with long training periods
How to approach this question
Apply the principles of supply and demand to the labour market. High earnings result from high demand for a particular skill and/or a low supply of workers with that skill. Evaluate which option describes a situation that restricts the supply of labour.
Full Answer
D.In those with long training periods✓ Correct
The determination of wages in a labour market is governed by supply and demand. Factors that restrict the supply of labour, such as the need for extensive education, training, or specific talents, tend to increase the equilibrium wage. Jobs requiring long training periods, like surgeons or architects, have a smaller pool of qualified candidates, making their labour more scarce and valuable, thus commanding higher earnings.
Common mistakes
Focusing on irrelevant factors like payment frequency or assuming that any job with high demand will have high pay, without considering the supply side.
Practice the full AQA GCSE Economics Paper 1
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