CAIE IGCSE Economics 3.3.2 Wage Determination Questions
Practise Cambridge IGCSE Economics by analysing wage determination, trade-union influence and factors affecting workers’ pay.
- Syllabus
- 2027–2029
- Course
- Economics 0455
Exam points
- Explain how demand and supply determine wages in labour markets.
- Analyse how trade unions influence bargaining power and wage rates.
- Evaluate factors that may increase or decrease workers’ wages.
CAIE IGCSE Economics 3.3.2 Wage Determination Questions question 1
[Maximum number: 8]
In 2023, the Canadian Prime Minister said that his country's aim was to increase immigration to half a million a year. This was because the country was experiencing labour shortages and an increase in life expectancy. More workers in Canada would increase the tax revenue available to spend on pensions, and more workers would also increase consumer spending. An increase in the immigration of both skilled and unskilled workers might affect the country's car industry.
Discuss whether or not the wages of workers employed by car firms will increase in the future.
Discuss whether or not the wages of workers employed by car firms will increase in the future.
In assessing each answer, use the table opposite.
Why they might:
- demand for cars might rise
- revenue / profit may increase, enabling firms to pay more
- car workers may become more skilled / more productive
- bargaining strength to car workers may increase / their trade unions may become more powerful / inflation rate may increase causing higher wage demands
- governments may subsidise car production.
Why they might not:
- advances in technology may reduce the need for car workers
- rise in unemployment will increase competition among workers for jobs
- increased immigration may increase the supply of car workers
- demand for cars may fall if public (mass) transport improves
- inflation may reduce real wages.
8
Level
3
5(d)
Level & \multicolumn{1}{|c|}{ Description } & Marks
1 &
There is a simple attempt at using
economic definitions and terminology.
Some reference may be made to
economic theory, with occasional
understanding.
1-2
0
A mark of zero should be awarded for no
creditable content.
\end{tabular}
L1 and up to 2 marks for understanding of wages, firms and employment.
\end{tabular}
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