Economics 0455 · IGCSE

Workers

100 practice questions on Workers, with worked solutions and instant marking.

The table shows how incomes changed for several occupations between $2003$ and $2013$. What conclusion can be drawn from the table?

Feb/March 2016

Sohrab purchased shares in a French telecommunications company that trades in many countries. Joel owns and manages a shop that sells mobile telephone accessories and carries out repairs. What is not identified above?

Feb/March 2016

At what point is a firm most likely to cut its demand for labour?

Feb/March 2017

What causes some assembly workers to be paid poorly?

Feb/March 2017

The table presents how income changed for selected occupations from 1995 to 2015. What conclusion can be drawn from the table?

Feb/March 2017

In 2010, official figures indicated that South Africa’s unemployment rate was very high, at about $25\%$, even though wages were twice the level in Brazil. What could explain South Africa’s high wages during a period of high unemployment compared with Brazil?

Feb/March 2018

What direct advantage does specialisation give to a worker?

Feb/March 2018

What might put women off applying for jobs?

Feb/March 2019

Which statement best explains why doctors are usually paid more than hospital cleaners?

Feb/March 2020

In a country where the population is falling, the population structure is also changing, with the $15\text{-}64$ age group getting smaller. How could this reduce labour supply shortages straight away?

Feb/March 2020

What could lead to an increase in wages?

Feb/March 2021

The graphs illustrate the supply of labour in four occupations. Which graph indicates that, once income rises above a certain level, people choose leisure over work?

Feb/March 2023

What is likely to occur within a country if its government issued more work permits to doctors from other countries?

Feb/March 2023

Safiye Ali became Turkey’s first female doctor in 1923. By 2020, women made up 40% of Turkish doctors. During this period, labour productivity rose. Turkey also saw progress in technology, a shift in the current account balance on its balance of payments, and a substantial rise in population size.

Feb/March 2023

The diagram illustrates the demand for, and the supply of, labour for farm workers. The starting equilibrium is X. What will the new equilibrium be if labour productivity rises?

Feb/March 2024

When wage rates are higher, a person would rather work fewer hours than earn more income. Which curve represents this?

Feb/March 2025

The table presents how the working population is divided among different sectors of an economy, measured in millions (m), across two years. What conclusion can be drawn from this information?

Feb/March 2025

Which type of government measure would increase the geographic mobility of labour?

Feb/March 2025

If the wage rate rises, a bus driver will work for more hours. However, as his income rises, there comes a point at which he values extra leisure more than additional work. Which supply curve, S, shows this situation?

May/June 2015

When selecting a job, people often consider features of the work apart from salary. Which option would not fit the features of employment that a worker is seeking?

May/June 2015

A bus company wants to appoint a qualified senior manager who will coordinate bus timetables and oversee staff. Because the company also runs bus services during the night, some of the work will need to be done at night. A good salary is being offered. Which applicant would be most likely to be given the job?

May/June 2015

On the diagram, $D_1D_1$ and $S_1S_1$ show the demand for labour and the supply of labour. $W$ shows a legal minimum wage. If immigrant labour enters the market in large numbers, the labour supply curve moves from $S_1S_1$ to $S_2S_2$. How many workers will be employed if the minimum wage legislation is then removed?

May/June 2016

In the diagram, $D_1D_1$ and $S_1S_1$ show the demand for labour and the supply of labour respectively. $W$ shows a legal minimum wage. An inflow of immigrant labour shifts the labour supply curve from $S_1S_1$ to $S_2S_2$. How many people will be employed if the minimum wage law is then removed?

May/June 2016

On the diagram, $D_1D_1$ and $S_1S_1$ show the demand for and the supply of labour. $W$ shows a legal minimum wage. If immigrant labour enters the market, the labour supply curve moves from $S_1S_1$ to $S_2S_2$. How many people would be employed if the minimum wage legislation were then removed?

May/June 2016

The year 2014 brought the longest strike ever seen among platinum miners in South Africa. It affected 70 000 miners out of 200 000 people employed in the industry. Some of these miners were migrant workers from neighbouring countries, which had expanded the country’s labour force. The strike cost the world’s three largest platinum producing firms US$1.4 billion and cut South Africa’s platinum exports.

May/June 2016

In what kind of occupation are workers most likely to receive their highest earnings while still relatively young?

May/June 2017

In South Africa, there is a comparatively small supply of skilled workers. Nevertheless, average wages in South Africa are twice the average wage in Brazil and Turkey, and they are $1.6$ times greater than in Malaysia. What can be concluded from this information?

May/June 2017

Which employee is most likely to be at risk of a falling income near the end of their working life?

May/June 2017

What is the most likely explanation for why airline pilots receive higher pay than agricultural workers?

May/June 2017

In 2015, the money sent back home by Nepalese workers employed overseas made up 29% of Nepal’s total income. These remittances also had a favourable effect on the country’s current account position in its balance of payments. In Kerala, a state in India, remittances made up 36% of total income, with people from the state travelling abroad to do a variety of jobs including work as dentists and hotel cleaners.

May/June 2017

What is most likely to cause university lecturers’ wages to rise?

May/June 2018

What is likely to lead to higher wages for airline pilots?

May/June 2018

Well over 80% of Qatar’s population are immigrants. Net immigration has supported the nation’s need for labour. Alongside the shortage of workers, there is also a shortage of drinking water. The government has launched public campaigns to stop people using their free drinking-water supply to fill swimming pools and irrigate gardens. In 2016, government spending was raised to boost the country’s economic growth rate.

May/June 2018

The table illustrates how real incomes changed for a range of occupations from 1985 to 2015. What conclusions can be drawn from the table?

May/June 2019

Carlos has received an offer of a new job from a large multinational company. He is not sure whether to take the post. What is one non-wage factor that he may take into account?

May/June 2019

The table presents how real incomes changed across several occupations from 1985 to 2015. What conclusion can be drawn from the table?

May/June 2019

The table presents the variation in real incomes for several occupations between 1985 and 2015. What conclusion can be drawn from the table?

May/June 2019

What is the most likely cause of a long-term fall in the number of people employed in the banking sector of an economy?

May/June 2019

At the beginning of February 2017, the Japanese government launched its ‘Premium Friday’ scheme. Under this plan, employers are encouraged to let workers finish at 15:00 on the final Friday of every month without any reduction in pay. The Japanese government wants to cut the number of hours people work. One reason is to improve workers’ health and possibly their productivity. Fig. 1.1 shows the average number of hours worked and productivity (GDP per hour worked in US $) in six selected countries. Fig. 1.1 is a bar chart showing six countries: France, Germany, Japan, Mexico, Russia and South Korea. For each country there are two bars. One bar shows average hours worked per week. The other bar shows productivity (GDP per hour worked in US $). Almost one quarter of Japanese workers work more than 50 hours a week, and some do more than 25 hours overtime a week. The average Japanese worker takes only half of their paid holidays. Nearly 20 years of weak economic growth and deflation have produced a feeling of job insecurity. Trade unions in Japan have been focusing on trying to secure shorter working hours. The government believes that fewer working hours would leave people with more time to bring up a child and care for elderly relatives. Japan’s birth rate has dropped every year for the last 36 years, and it has fallen more quickly than the death rate, causing the size of the population to fall. The government hopes that more leisure time will lead to higher consumer spending. Increased consumer spending would help Japanese firms and would lower the risk of deflation returning. The first reaction to Premium Friday was disappointing. By the end of February 2017, only 4% of Japanese workers left work early. In the longer term, however, the scheme may work better. This is because unemployment in the country had fallen, with only 2 million out of a labour force of 66 million being unemployed at the end of February 2017. Low unemployment raises job security and usually pushes wages up. In Japan’s case, however, the increased demand for labour has been matched by a greater supply. Some of this extra supply has come from migrant workers, but a larger share has come from more Japanese people working beyond retirement age and more women taking paid work.

May/June 2019

In low-income countries, why do fewer girls than boys become skilled design engineers? What could account for this?

May/June 2021

The table shows how employment was distributed across selected industries in two years. In what way did the distribution of employment alter from year 1 to year 2?

May/June 2021

What might be one disadvantage of specialisation for a worker?

May/June 2021

The diagram illustrates a labour market. $X$ represents the original equilibrium. A trade union secures a minimum wage of $W$, and the government limits the supply of immigrant labour. What is the new equilibrium?

May/June 2021

The table shows how employment was distributed across selected industries in two years. In what way did the distribution of employment change from year 1 to year 2?

May/June 2021

What economic condition would attract labour immigration?

May/June 2021

The table shows how employment was split across chosen industries in two years. How did the employment distribution change from year 1 to year 2?

May/June 2021

What is most likely to lead to an immediate reduction in the size of the labour force?

May/June 2022

What factors could stop a person from selecting a particular occupation?

May/June 2022

What is most likely to improve the geographical mobility of labour?

May/June 2023

In the same company, one worker receives a higher wage than another worker. Which explanation for the gap in their wage could be classed as discrimination?

May/June 2024

The diagram illustrates the labour demand and labour supply curves for a firm. The starting wage rate is shown by $W_0$ and the equilibrium quantity of labour employed is $L_0$. A trade union representing all of the workers negotiates an increase in the wage rate to $W_1$. What amount of unemployment is caused by this rise in wages?

May/June 2024

Introducing a minimum hourly wage in an industry is intended to cut poverty among low-paid workers. What is one benefit to workers of an effective national minimum wage?

May/June 2024

The diagrams illustrate the wage rates paid to cleaners (OWc) and nurses (OWn). What happens if a national minimum wage of $OM$ is brought in?

May/June 2024

In the diagram, X shows the starting equilibrium point in the labour market for engineers. If the skills of engineers increase, productivity rises. Which point shows the new equilibrium in the labour market for engineers?

May/June 2024

What is likely to raise the occupational mobility of labour?

May/June 2025

At first, a bus driver is prepared to work longer hours when the wage rate rises. But as his earnings grow, a point is reached where he chooses more leisure rather than extra work. Which supply curve, $S$, shows this situation?

May/June 2025

The table gives the mean wage in four countries, A, B, C and D. In which country is relative wage discrimination against female employees the greatest?

May/June 2025

Sanjay worked as a coal miner, but he lost his job when the only mine in the area shut down. He lives in a village close to his family and friends and wants to remain in that village. What is the reason for Sanjay’s occupational immobility?

May/June 2025

A government carried out a labour force survey. Only people of working age were included. The findings are shown in the table. Number of people: - of working age: $10\,000\,000$ - employed: $7\,000\,000$ - unemployed: $1\,000\,000$ - not seeking work: $2\,000\,000$ What percentage of working-age people are in the labour force?

May/June 2025

What is one non-wage factor that affects a person's choice of occupation?

May/June 2025

Employees in the secondary sector of an economy have a higher average income than employees in the tertiary sector. Which combination would be most likely to widen the gap in wages between workers in the secondary and tertiary sectors of an economy?

May/June 2025

Which change is most likely to raise the demand for labour in an industry?

May/June 2025

Read the source information carefully before you answer Question 1. Source information: Gabon’s industries and labour force Gabon is a small country in western Africa. Its rainforests cut air pollution, supply wood for timber production, help to protect against floods and lessen soil erosion. The Gabonese Government wants to protect the country’s rainforests. It has set up some national parks, which has boosted tourism and affected the current account of the balance of payments. The Gabonese Government wants to lower the country’s dependence on timber production, oil production and agriculture. The country is Africa’s fifth-largest oil producer, but its oil reserves are being used up. The oil industry creates water pollution. The country has other natural resources, including gold. In 2022, new gold deposits were discovered in Gabon. A large proportion of Gabon’s labour force works in agriculture. Fig. 1.1 shows the literacy rate and the percentage of the labour force employed in agriculture in six selected countries in 2022. Fig. 1.1 The literacy rate and the percentage of the labour force employed in agriculture in selected countries in 2022. The vertical axis is labelled: "% of labour force employed in agriculture". The horizontal axis is labelled: "literacy rate (% of those aged 15 and over who can read and write)". Countries shown on the figure include: Mali, Sierra Leone, Gabon, Mauritania, Tunisia and South Africa. In recent years, Gabon has had a high unemployment rate among 15-24 year olds. High youth unemployment can mean that young people do not acquire the skills and experience needed to reach high productivity. It can also damage their confidence. Some governments pay private sector firms to provide unemployed young people with work experience. The quality of this experience may vary. The Gabonese Government wants to expand its textile industry by encouraging firms to become larger. Industry output will be influenced not only by possible government support, but also by the use of technology and the specialisation of workers.

May/June 2025

At the beginning of 2023, the four biggest accountancy firms in the world saw demand for their services fall. One reason for this weaker demand was that mergers in other sectors, including the chocolate industry, also dropped. Three of the accountancy firms cut back the number of new employees they recruited, while the remaining accountancy firm announced redundancies. The ease with which workers can secure new jobs depends on their mobility.

May/June 2025

A worker’s wage rate is cut. Which set of job characteristics is most likely to make the worker remain in the job?

Oct/Nov 2015

A person does his work at home producing table cloths. He works for 6 hours per day and produces 15 table cloths each hour. He sells each one for $\$10$. He then chooses to work for just 4 hours per day. What can be concluded from the information above?

Oct/Nov 2015

Workers in car assembly generally receive higher pay than agricultural workers. What could account for this?

Oct/Nov 2015

When deciding on an occupation, people often take into account matters other than the wage-rate. What would not be a suitable match for the kind of work preferred?

Oct/Nov 2017

A job provides employees with piecework, commission, paid holidays and a company pension. Which of these are non-wage factors?

Oct/Nov 2017

Even though office work pays more, many people continue in low-paid farm jobs. What could account for this in developing economies?

Oct/Nov 2017

The diagram presents two curves: one represents labour demand and the other represents labour supply. The government sets a minimum wage $(M_w)$ that employers are required to pay. What effect will this minimum wage have?

Oct/Nov 2017

A woman accountant employed by a private firm receives $80$ per hour, whereas a man who is Professor of Finance at a government university receives $40$ per hour. Both of them work the same number of hours. What might account for the gap in earnings?

Oct/Nov 2017

Each of the four groups of descriptions in the table relates to a person who is applying for a job. Which person is most likely to be paid more?

Oct/Nov 2017

What might bring about a rapid rise in the working population?

Oct/Nov 2017

The diagrams illustrate the percentage of employment in different sectors in two countries. Which statement is correct when country X is compared with country Y?

Oct/Nov 2017

Which workers are most likely to receive the largest increase in wages from a pay rise of $2\%$?

Oct/Nov 2017

What factors could influence the size of the labour force in an economy?

Oct/Nov 2018

What could lead to a rise in the income of a doctor employed by a government health service?

Oct/Nov 2018

Teachers in many countries object to government cuts in education spending. They fear that this may lower the standard of education and also damage the welfare of teachers employed in the state sector. Some teachers focus on one subject, while others teach several subjects.

Oct/Nov 2018

Many UK students work during their holidays, and some set aside part of what they earn to cover tuition fees. On average, UK graduates receive £8500 more per year than non-graduates. In 2016, economics graduates had the second-highest average earnings among all UK graduates. The top 10% of economics graduates earned £115000 a year.

Oct/Nov 2018

A comparatively large share of people from the Philippines either are employed in call centres or work overseas. Call centres employ 1.2 million people in the Philippines and make up 8% of the country’s Gross Domestic Product. Because of the time difference with the US, the main market for call centre services, many Filipinos must work during the night. The call centres are adopting new technology, including robots.

Oct/Nov 2018

The cost of dental care is rising in most countries. For instance, the average cost of filling a tooth is $180 in the US. The number of dentists is also rising in the US. The biggest share of the US labour force works in the tertiary sector. Price changes affect the supply of products in the tertiary sector, and also in the primary and secondary sectors.

Oct/Nov 2018

A musician must decide whether to perform with an orchestra in Germany or in England. Which pairing of income and cost of living would be most likely to make her select the German orchestra?

Oct/Nov 2019

What is one example of a factor other than wages?

Oct/Nov 2019

A musician must decide whether to perform with an orchestra in Germany or in England. Which mix of income and living costs is most likely to lead her to select the German orchestra? The incomes and cost of living in Germany, compared with those in England, are given for pre-tax (gross) income, after-tax (net) income and cost of living.

Oct/Nov 2019

What is one drawback of working as a specialist skilled worker?

Oct/Nov 2019

What is most likely to raise the occupational mobility of labour?

Oct/Nov 2019

It has recently been made public that a king works part-time as a pilot for a multinational airline. Some pilots and police officers have moved out of their jobs to become teachers, while others have left to work as sole traders. The pay teachers receive changes with age.

Oct/Nov 2019

At what point is the demand for labour in an industry most likely to rise?

Oct/Nov 2020

What are the reasons that, on average, women earn less than men?

Oct/Nov 2020

Which factor has no influence on wages in a free market economy?

Oct/Nov 2020

Which government policy measure would lead to a rise in a country’s supply of labour?

Oct/Nov 2020

In which type of occupation would wages be likely to rise?

Oct/Nov 2020

Nurses’ wages fall, while pilots’ working hours also fall. If all other influences remain unchanged, what is the likely impact on the number of people deciding to become nurses or pilots?

Oct/Nov 2021

What would cause the demand for labour in an industry to rise?

Oct/Nov 2021

The diagrams illustrate the wage rates of cleaners (OWc) and nurses (OWn). What effect would there be if a national minimum wage of OM were introduced?

Oct/Nov 2021

What impact does net emigration of people aged $20-40$ have on an economy?

Oct/Nov 2021

Medan ranks as the third largest city in Indonesia by population. It is sometimes called the city of a million shop-houses because many people launch small firms on the ground floor of their homes. As a result, the market supply in industries such as cafes and clothes shops has increased. Also, because demand for food delivery has grown, the unemployment rate has fallen. However, labour mobility is restricted both within Medan and across Indonesia.

Oct/Nov 2022

Which of the following is not a reason why airline pilots in a particular country earn different amounts?

Oct/Nov 2023

A food-processing company chooses to switch from a labour-intensive production method to a capital-intensive production method. What is likely to fall as a result of this change?

Oct/Nov 2024