CAIE IGCSE Economics 3.3 Workers Topic Practice

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Covered syllabus points

3.3.1—Factors affecting an individual’s choice of occupation3.3.2—Wage determination3.3.3—Reasons for differences in wages3.3.4—Mobility of labour3.3.5—Division of labour

Question 1

[Maximum number: 8]

Lanzarote, a Spanish island, was once an area with very high rates of poverty. However, the rise of tourism has greatly reduced unemployment. The government is trying to attract more workers to the island by using non-wage factors. Lanzarote's low taxes also attract workers to the island. Mobility of labour in the island's economy has also increased.

Question (a)

(a)

Identify two non-wage factors that may influence a worker's job choice.

[ 2 ]

Question (b)

(b)

Analyse the influences on the mobility of labour.

[ 6 ]

Question 2

[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.

Question 3

[Maximum number: 1]

Worker X earns less than worker Y.

What is most likely to be true of worker X?

A

They have a longer period of training than worker Y .

B

They have a longer working day than worker Y.

C

They have skills that are more in demand than worker Y.

D

They have weaker bargaining power than worker Y.

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