Optional25 marks
Case study · The energy market
Evaluate the microeconomic and macroeconomic factors that explain gender-based wage differences in the UK oil and gas industry.
Specification point 3.5.3 · Theme 3
Wage determination in competitive and non-competitive markets
Labour market · Business behaviour and the labour market
Questions tagged to this specification point
12 questions
Essay questions
Long-form evaluation and discussion
Optional25 marks
Case study · The food delivery industry
Evaluate the microeconomic and macroeconomic effects of significant increases in the minimum wage. Refer to restaurants or other food delivery services in your answer.
3.5.3 · Wage determination in competitive and non-competitive markets2.1.3 · Employment and unemployment
Optional25 marks
ContextThe national living wage, the minimum wage for 25-year-olds and over, is expected to rise to more than £10.50 an hour in 2024 compared with £8.72 in 2020. The wage does not apply to the UK’s self-employed and ‘gig economy’ workers. Some economists said the increase was ambitious. Business groups warned that employers in sectors such as social care could be hit hard. In large parts of the north of England the living wage has already reached two-thirds of local median earnings, said Professor Shackleton.
Evaluate the disadvantages of a significant increase in the national living wage on a specific labour market, such as that for social care workers.
Learn this question
Open a video explanation without leaving the question.
Optional25 marks
In July 2017 it was announced that only a third of the BBC’s 96 top earning presenters were women and that its seven highest-paid presenters were all men. According to the High Pay Centre, in 2018, UK chief executives can earn 120 times more than the average full-time worker earning £28 758. With reference to an industry of your choice, evaluate why wage differences exist within the UK labour market.
Learn this question
Open a video explanation without leaving the question.
Data-response questions
Questions built around exam extracts
8 marks
Case study · The cost of living in the UK
With reference to Extract B, examine two likely reasons why wages in supermarkets are above the National Minimum Wage of £10.42.
3.5.3 · Wage determination in competitive and non-competitive markets3.5.2 · Supply of labour3.5.1 · Demand for labour
12 marks
Case study · Hand car wash (HCW) firms in the UK
Discuss the likely effects of changes in the level of migration on firms such as HCWs in the UK. Use a labour market diagram and the information provided to support your answer.
Diagram needed. Open the original question paper for the diagram
15 marks
Case study · The UK energy market
With reference to Extract C and your own knowledge, discuss policies businesses and government might implement to reduce labour immobility to benefit the energy sector.
12 marks
Case study · The UK economy
Discuss the likely impact of the National Living Wage on the profitability of firms. Use a cost and revenue diagram in your answer.
Diagram needed. Open the original question paper for the diagram
3.5.3 · Wage determination in competitive and non-competitive markets3.3.4 · Normal profits, supernormal profits and losses
Short-answer questions
Focused calculations, explanations and diagrams
4 marks
ContextThe National Minimum Wage for people over 23 rose by 9.7% to £10.42 in April 2023. The industry most affected is hospitality.
Draw a labour market diagram to show the likely impact of the increase in the National Minimum Wage for hospitality employees.
Diagram needed. Open the original question paper for the diagram
4 marks
ContextIndex of pay in the public and private sector. Nominal average weekly earnings (base year January 2018 = 100) 120 118 Private Sector 115 114 Index 110 Public Sector …
Over 90% of nurses work in the public sector. Nurses in the public sector have experienced wage rises lower than those in the private sector over the past 10 years. Using the information provided and the concept of monopsony, explain why nurses in the public sector have had lower wage rises than those in the private sector.
Learn this question
Open a video explanation without leaving the question.
4 marks
ContextStatement 1: Since Poland joined the European Union (EU) in 2004, over one million of its workforce have migrated to other countries in the EU. Statement 2: Many engineers have left Poland for higher paid jobs in other countries in the EU.
Explain the likely impact of migration on the wage level of engineers in Poland.
Learn this question
Open a video explanation without leaving the question.
Multiple-choice questions
Quick checks of economic understanding
A-level Paper 1, June 2023, Q5(a)Multiple choice
1 mark
ContextIndex of pay in the public and private sector. Nominal average weekly earnings (base year January 2018 = 100) 120 118 Private Sector 115 114 Index 110 Public Sector …
Which one of the following is the ratio of public sector pay relative to private sector pay in 2022?
A1:0.97
B1:1.04
C1:4.0
D1:14.0
Learn this question
Open a video explanation without leaving the question.
Question text © Pearson Edexcel, quoted for students' private study. Open the official papers and mark schemes from the links on each question.