Section A: Key terms and recall
Identify two factors that might influence an individual's choice of occupation.
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Model answer: - Interest in the work (1 mark) - Job security (1 mark)
What is meant by wage determination?
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Model answer: The process by which the level of wages is set, considering factors like supply and demand for labour, and collective bargaining (1 mark).
Name two reasons for differences in wages between different jobs.
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Model answer: - Differences in skills required (1 mark) - Differences in job demand (1 mark)
What is labour mobility?
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Model answer: The ease with which workers can move from one job to another or from one location to another (1 mark).
Define division of labour.
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Model answer: The breakdown of a production process into a series of smaller, specialised tasks (1 mark).
Section B: Applying your knowledge
Sarah is deciding between becoming a doctor or an artist. List two factors that might influence her decision and explain how each might affect her choice.
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Model answer: - Interest in the work (1 mark): If Sarah has a strong interest in art, she might choose to become an artist. (1 mark for explanation) - Earnings potential (1 mark): If the earnings potential as a doctor is significantly higher, this might influence her to choose medicine. (1 mark for explanation)
Explain how the supply and demand for labour can affect wage determination in a specific industry, such as technology.
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Model answer: - In the technology industry, there is often a high demand for skilled workers like software developers. (1 mark) - If the supply of these workers is low, wages may be driven up due to competition among employers. (1 mark) - Conversely, if there is an oversupply of workers, wages may be driven down. (1 mark) - Collective bargaining by unions can also influence wages. (1 mark)
Section C: Explain and analyse
Analyse the reasons for differences in wages between a CEO and a primary school teacher. Consider factors such as skills, responsibilities, and demand.
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Model answer: - Skills (1 mark): A CEO typically requires a higher level of managerial and strategic skills, which are often more complex and require more experience. (1 mark for explanation) - Responsibilities (1 mark): The responsibilities of a CEO are generally greater, as they are ultimately responsible for the success or failure of the company. (1 mark for explanation) - Demand (1 mark): The demand for effective CEOs is high, as they are crucial to the success of businesses. (1 mark for explanation) - Risk (1 mark): CEOs often face high levels of risk and pressure, which can justify higher wages. (1 mark for explanation)
Discuss the advantages and disadvantages of division of labour, using examples where appropriate.
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Model answer: - Advantages (3 marks): - Increased efficiency (1 mark): Workers become highly skilled at their specific task, increasing productivity. (1 mark for explanation) - Specialisation (1 mark): Workers can focus on tasks they are best at, leading to higher quality output. (1 mark for explanation) - Economies of scale (1 mark): Division of labour can lead to lower costs per unit as production increases. (1 mark for explanation) - Disadvantages (3 marks): - Monotony (1 mark): Repetitive tasks can lead to worker dissatisfaction and boredom. (1 mark for explanation) - Lack of versatility (1 mark): Workers may become too specialised, making it difficult to adapt to changes. (1 mark for explanation) - Dependence (1 mark): If one worker is absent, the entire production process can be disrupted. (1 mark for explanation)
Section D: Challenge
Imagine you are an economist advising a government on policies to increase labour mobility. Propose two policies and explain how each could help achieve this goal.
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Model answer: - Policy 1: Investment in education and training (2 marks): - By providing accessible and affordable education and training programmes, workers can acquire new skills that make them more adaptable to different jobs. (1 mark for explanation) - This can encourage workers to move into industries with labour shortages, increasing mobility. (1 mark for explanation) - Policy 2: Relocation assistance (2 marks): - Offering financial assistance or incentives for workers to relocate to areas with higher demand for labour can increase geographical mobility. (1 mark for explanation) - This can help balance labour markets and reduce regional unemployment disparities. (1 mark for explanation)