Economics 9708 · AS & A Level · Long-run costs and economies of scale

Long-run costs and economies of scale — practice question

The table summarises the key features of employment in two different occupations. Occupation X: average annual wage $80 000; number of weeks annual leave 10 weeks; average length of working week 44 hours; job security low; length of training course 2 years. Occupation Y: average annual wage $100 000; number of weeks annual leave 5 weeks; average length of working week 48 hours; job security high; length of training course 1 year. What conclusion can be drawn with certainty from the table?

  • AOccupation Y has greater non-financial advantages than occupation X.
  • BThere will be more competition for places on training courses to enter occupation X than occupation Y.
  • CThose who choose occupation X attach more importance to leisure activities than those who choose occupation Y.
  • DThose who choose occupation Y attach greater importance to job security than those who choose occupation X.

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