3.

3 Workers

1. Why is a surgeon likely to have a higher wage rate than a hospital porter?

AThe surgeon has been in the job a longer time.

B The surgeon has a longer training period.
C The surgeon is older.
D The surgeon is in a trade union.

2. What is an advantage for a worker in part-time rather than full-time employment?

A a higher wage
B greater employment protection
C more opportunity for other activities
D greater chance of promotion
3. What might cause an increase in the earnings of a doctor in a government health service?

A an increasing number of doctors graduate from university each year

B an increasing number of people need health care
C the government spends less on the nation’s health services
D the population becomes more aware of healthy eating
4. What is the most likely outcome of increased specialisation in a water bottling plant?

A higher costs per bottle

B higher wage rates
C increased job satisfaction
D increased output of bottles of water

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5. Why is a surgeon likely to have a higher wage rate than a hospital porter?
A The surgeon has been in the job a longer time.
B The surgeon has a longer training period.
C The surgeon is older.
D The surgeon is in a trade union.

6. What is the best example of specialisation?

A a diversified engineering company
B a general repairs handyman
C a self-sufficient, non-trading country
D an old person’s helper and care assistant

7 What is likely to cause wages in an occupation to be low?

A a high level of responsibility
B high unemployment
C the need for special skills
D unpleasant working conditions
8. Which feature of working in an occupation might tend to keep the basic wage rate down?
A handling dangerous materials
B receiving commission payments
C undertaking training
D working unsocial hours

9 An athlete needs an income and also needs time for training and competitions.
Which occupation is most appropriate for the athlete?

A department store manager who is paid a salary

B livestock farmer working for profit
C assembly-line worker who is paid a wage
D self-employed photographer

10 Which change would be most likely to cause the earnings of hotel managers in Mauritius to
rise more than the earnings of sugar cane workers there?

A a decrease in the supply of sugar cane workers in Mauritius

B a decrease in the price of hotel rooms in Mauritius
C an increase in the productivity of hotel managers in Mauritius
D an increase in the price of sugar cane from Mauritius

11 On average, male employees are paid more than female employees.

What could be a reason for this?
A A higher percentage of female employees belong to trade unions.
B A higher percentage of females work in unskilled occupations.
C Females have a longer working life.
D There are fewer female employees.

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12. Which feature of working in an occupation might tend to keep the basic wage rate down?
A handling dangerous materials
B receiving commission payments
C undertaking training
D working unsocial hours
13. An athlete needs an income and also needs time for training and competitions.
Which occupation is most appropriate for the athlete?
A department store manager who is paid a salary
B livestock farmer working for profit
C assembly-line worker who is paid a wage
D self-employed photographer

14. D

15. What makes specialisation easier?

A the imposition of taxation
B the protection of trade
C the system of barter
D the use of money
16. D
What makes specialisation easier?
A the imposition of taxation
B the protection of trade
C the system of barter
D the use of money

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17. D

18. What might cause the wages of bus drivers to rise?

A Their productivity falls.
B The number of bus routes falls.
C The number of people making bus journeys falls.
D The supply of bus drivers falls.
19. Why are some assembly workers poorly paid?
A because their work is exhausting
B because their work is repetitive
C because their work is unskilled
D because they work long hours
20 Male workers on average get paid more than female workers.
What might explain this?
A Male workers have better qualifications.
B Female workers are more likely to be in trade unions.
C Male workers live nearer to their place of work.
D Female workers are less likely to take time off work.
21 The first worker in each pair of workers below is usually paid more.
In which case is this not likely to be the result of the first worker’s greater value to the firm?
A a worker in a trade union compared with a worker with no trade union
B a worker with training compared with a worker with no training
C a worker with supervisory responsibilities compared with a worker with no responsibility
D a worker with years of experience compared with a worker with no experience
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22 A supermarket wishes to recruit a qualified manager for a senior position to control the stocks
of goods. Some work will be required at night as the supermarket is open 24 hours. A good
salary is being offered.
Which applicant would be most likely to be suitable for the position?

A a person currently employed as a supervisor in another supermarket

B a person who has experience of managing a small newsagents
C a person who has to travel a long way and has demanding family commitments
D a person who has recently graduated in Economics
23. What is likely to lead to an increase in the wages of university lecturers?
A an increase in the fringe benefits provided to university lecturers
B an increase in the tuition fees paid by university students
C government policies reducing the length of the training for university lecturers
D increased demand from students to study at university
24 What is likely to be found when comparing high income earners with low income earners?
A High income earners pay a lower proportion of their income in direct tax.
B High income earners spend a lower proportion of their income on food.
C High income earners spend a lower proportion of their income on foreign travel.
D High income earners save a lower proportion of their income.
25 A supermarket wishes to recruit a qualified manager for a senior position to control the stocks
of goods. Some work will be required at night as the supermarket is open 24 hours. A good
salary is being offered.
Which applicant would be most likely to be suitable for the position?

A a person currently employed as a supervisor in another supermarket

B a person who has experience of managing a small newsagents
C a person who has to travel a long way and has demanding family commitments
D a person who has recently graduated in Economics

26 What is the most likely reason for a firm to offer higher wages to recruit more staff?
A falling incomes
B falling output
C falling prices
D falling unemployment
27 In the UK in 2003, average hourly earnings for plumbers were higher than average hourly
earnings for teachers.
What was most likely to have caused this?

A Plumbers were in short supply.

B Plumbers had a shorter training period than teachers.
C Plumbers had further to travel to work.
D Plumbers worked longer hours than teachers.

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28 What is most likely to cause an increase in wages in an industry?
A a decrease in employment
B a decrease in trade union power
C an improvement in working conditions
D an increase in the responsibilities of workers
29 D

30 What is most likely to explain why a worker receives above average hourly earnings?

A Demand for the product is high and the production process is simple.
B The employer provides the worker with fringe benefits.
C The product is difficult to produce and requires the worker to be highly skilled.
D Working in the job provides the worker with a high level of job satisfaction.
31 Why are farm workers likely to be paid a lower wage rate than workers in manufacturing?

A Farm workers are more likely to be in a trade union.

B Farm workers are more likely to have a shorter working life.
C Farm workers are more likely to have poorer working conditions.
D Farm workers are more likely to produce goods with a lower value.
32 What is most likely to cause an immediate decrease in the size of the working population?

A a fall in the average size of families

B a fall in the birth rate
C a reduction in the age of retirement
D an increase in net immigration

33 What is least likely to be found in a typical developing country?

A Ill-health affects many of the population.

B Many workers are highly skilled.
C Production is labour-intensive.
D There is an unequal distribution of income and wealth.

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34. What is not an advantage of specialisation and division of labour?

A A product is manufactured in separate stages, making it easier to use machinery.

B Some workers become more dependent on other workers.
C Workers complete a limited range of tasks and become more efficient at them.
D Workers spend less time moving from one task to another.
35. In 2007 the average annual pay of a scientist in the UK was £37 290. The average annual pay
of a laboratory technician was £26 157.
What could explain this difference in earnings?

A Laboratory technicians have stronger bargaining power than scientists.

B Laboratory technicians have to work more unsociable hours than scientists.
C The period of training for scientists is longer than that for laboratory technicians.
D The supply of scientists is high relative to demand for their services.
36. What is an example of occupational mobility of labour?
A A Japanese car manufacturer locates in England.
B A nurse returns to work after her children have grown up.
C A student takes an evening job in a restaurant.
D Farm workers retrain as call-centre workers.
37. ‘There are actors who earn extremely high incomes.’
What best explains this?

A Acting is a popular career.

B Actors have regular employment.
C Actors work short hours.
D Some actors have a unique talent.

38 What might be a direct benefit to the individual worker of a specialised job?

A Specialisation can enable the worker to become more skilled.

B Specialisation enables a better quality product to be produced.
C Specialisation enables the firm to introduce more machinery.
D Specialisation makes better use of resources.
39. Why might factory workers have higher wage rates than agricultural workers?

A Factory workers are in greater supply.

B Factory workers face fewer risks of accidents.
C Factory workers have cleaner working conditions.
D Factory workers use more productive equipment.

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40. What is likely to cause wages in an occupation to be high?

A a low level of responsibility

B high unemployment
C pleasant working conditions
D the need for special skills
41, Which of the following is most likely to limit wage increases in an industry?

A an increased demand for the industry’s product

B a rise in the industry’s profits
C a rise in wages for workers in similar jobs
D the replacement of workers with robots

42. Differences in earnings between higher paid and lower paid jobs have widened in developed
countries.
What is the most likely reason for this?

A Immigration of unskilled workers has reduced.

B The demand for highly skilled workers has increased.
C Unemployment rates have remained low.
D Women are paid the same rates as men.
43. What might be a direct benefit to the individual worker of a specialised job?

A Specialisation enables a better quality product to be produced.

B Specialisation enables the firm to introduce more machinery.
C Specialisation enables the worker to become more skilled.
D Specialisation makes better use of resources.

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44. D

45. Some lawyers charge very high rates per hour for their services.
What best explains this?

A The lawyers are very skilled.

B The lawyers work long hours.
C The lawyers work part-time and need a high hourly rate.
D The law profession is a popular career.
46. Why are unskilled workers paid less than skilled workers?
A There is a higher demand for unskilled labour than skilled labour.
B There is a larger supply of unskilled labour than skilled labour.
C Unskilled labour belong to trade unions.
D Unskilled labour is more productive than skilled labour.
47. Between 2009 and 2010 the number of potential jobs for qualified law students fell by 16%.
During the same period the total number of applicants for places on law courses increased.
What is the most likely explanation for this?

A an economic recession and an increase in general unemployment

B an increase in crime rates and the possibility of high salaries in the legal profession
C an increase in the retirement age for existing lawyers and an increase in law course fees
D the merger of law firms and the closure of law courses
48. In a particular industry, male workers on average are paid more than female workers.
What might explain this?
A Female workers are less likely to take time off work.
B Female workers are more likely to be in trade unions.
C Male workers have higher qualifications.
D Male workers live nearer to their place of work.
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49. As the demand for new houses increases, the demand for plumbers and electricians also
increases.
What does this statement illustrate?

A The demand for plumbers and electricians is complementary (joint) demand.

B The productivity of plumbers and electricians increases continually.
C There is no limit to the number of plumbers and electricians employed.
D The supply of plumbers and electricians is totally elastic.
50. In which occupations do wages tend to be lowest?

A in those where the work is dangerous

B in those where there is an excess supply of labour
C in those where workers are paid on a monthly basis
D in those where workers need long training
51. Why do female workers in many countries have a lower income than male workers?

A Female workers are more experienced.

B Female workers are more likely to be employed part-time.
C Female workers are more likely to be in trade unions.
D Female workers have more qualifications.
52. D

53. A security company wishes to recruit an experienced person for a senior position to answer
customers’ emergency calls, some of which would be during the night. It is offering a good
salary and a small apartment next to the company premises.
Which person would be most likely to apply and be offered the position?

A a confident person currently employed in installing security systems for the company
B a person who has experience of answering customers’ queries in a travel company
C a recently qualified engineering graduate in security systems
D a reliable person who says that he needs to live with his young family of five children

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54. A bus company wishes to recruit a qualified senior manager to be responsible for
coordinating bus timetables and managing staff. Some work will be required at night as the
company also operates bus services at night. It is offering a good salary.
Which applicant would be most likely to be offered the position?

A a person employed as a manager of a small taxi company

B a person employed as a supervisor in another bus company
C a recently qualified business graduate
D a trade union representative from another bus company with extensive family commitments
55. Car assembly workers usually earn more income than agricultural workers.
What might explain this?

A Car assembly has safer working conditions.

B Car assembly involves more regular hours.
C Car assembly is usually in smaller firms.
D Car assembly produces a higher-value product.
56. What will be likely to increase the wages of airline pilots?

A Incomes increase in the world’s major economies.

B Terrorist attacks decrease tourist travel.
C The cost of aviation fuel rises.
D The world economy goes into recession.
57. D

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58. B

59. Nazmin Uddin works in a local office as a secretary three days a week. She lives with her parents
in a small apartment.
Meer Ali owns a successful fitness centre that employs about twenty people. He owns a large
house.
Which is most likely to be correct?

A Nazmin spends a smaller proportion of her income than Meer.

B Nazmin saves most of her income.
C Nazmin would find it easier than Meer to borrow money.
D Nazmin has a lower disposable income than Meer.
60. What is a direct benefit to a worker of specialisation?

A the higher output that may lead to higher earnings

B the higher output that may lead to higher profits
C the higher output that may lead to lower costs per unit produced
D the longer training period that is required before starting work

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61. In which type of work are employees most likely to earn their highest income at a relatively
young age?

A manual building work

B professional legal work
C skilled craft work
D university teaching work
62. Individuals produced their own goods. They then decided to specialise. They formed a group
and offered their skills to each other but without the use of money.
What is not likely to be the result for the group?

A It will enjoy a rise in its material standard of living.

B It will have a wider choice of goods and services.
C It will need to use a system of barter.
D It will save time in obtaining goods and services.
63. In South Africa, the number of skilled workers is relatively low. However, average wages in
South Africa are double the average wage in Brazil and Turkey and they are 1.6 times higher
than in Malaysia.
What may be concluded from this information?

A Malaysian workers are more skilled than South African workers.

B Prices in South Africa are double those in Brazil.
C South Africa’s labour productivity is low.
D South African trade union bargaining power is strong.
64. Which worker is most likely to risk facing a falling income towards the end of their career?

A a manager in an engineering firm

B a manual worker in a building firm
C a supervisor in a retail firm
D an office worker in an advertising firm
65. What is the most likely reason why airline pilots earn more than agricultural workers?

A Agricultural work is difficult.

B Pilots work regular hours.
C There is a surplus of agricultural workers.
D There is no shortage of pilots.

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66. A job offers employees piecework, commission, paid holidays and a company pension.
Which are non-wage factors?

A commission and company pension

B company pension and paid holidays
C paid holidays and piecework
D piecework and commission
67. B

68. Although there are higher paid jobs in offices many workers stay in low-paid jobs on farms.
What might explain this in developing economies?
A Agricultural workers lack the necessary education and skills.
B Governments plan to increase indirect taxes on services.
C Manual workers are being replaced by machines.
D Workers on farms have high labour mobility.
69. Which workers are most likely to gain the highest increase in wages from a pay rise of 2%?
A airline pilots
B farm workers
C nurses
D shop assistants
70. A female accountant in a private firm earns $80 per hour; a male Professor of Finance in a
government university earns $40 per hour. Each works the same number of hours.
What could explain the difference in earnings?
A It is difficult to measure the output per hour in each profession.
B Pay in the private sector is profit-related but is not in the public sector.
C Qualifications of accountants are lower than those of Professors of Finance.
D Women are generally given preference over men in professional jobs.

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71. A

72. D

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73. What is an example of a non-wage factor?
A bonus
B commission
C fringe benefits
D overtime rates

74. C

75. What is a disadvantage of being a specialist skilled worker?

A Career opportunities are abundant.
B Earnings are related to the level of skill.
C It may be difficult to find work locally.
D Labour supply is elastic and plentiful.

76. C

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77. D

78. Saudi Arabia specialises in oil extraction and refining. This is a capital-intensive industry with
highly skilled labour. What might be a disadvantage of this specialisation?

A Oil companies have increased training costs as each worker needs many different skills.
B Oil companies may find it difficult to achieve economies of scale.
C Resource allocation is not efficient because a narrow range of goods is being produced.
D Workers may face a restricted range of job opportunities

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79. D

80. What is a disadvantage to employers of switching to production using division of labour?

A average cost decreases
B flexibility of workers is lost
C repetition of tasks saves time
D training time decreases

THE END

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