Occupations and wages

Question 1

What are wages?

Answer 1

Wages are a form of pay which is payed by the numbers of hours worked.

Question 2

What is a salary?

Answer 2

A form of pay that is a fixed amount of money each year and paid fortnightly.

Question 3

What is piece rate?

Answer 3

Piece rate is a form of payment to employees that is calculated based on the amount of something produced by an employee.

Question 4

What can cause a shift in the demand for labour?

Answer 4

1. Increased demand for goods and services
2. Increased productivity
3. An increase in the cost of capital
4. A decrease in the other costs of labour

Question 5

Why can an change in demand for goods and services cause the demand for labour to shift?

Answer 5

More or less workers may be needed to produce the output.

Question 6

Why can a change in productivity cause a shift in supply?

Answer 6

If the productivity of labour increases or decreases a firm may employ more workers as they add to value to output.

Question 7

What can cause the productivity of labour to change?

Answer 7

1. Better or worse machinery may be implemented
2. Better or worse methods of production may be implemented
3. Changes in the amount of training for employees

Question 8

Why does an increase or decrease in capital cause the demand for labour to change?

Answer 8

If machinery and equipment become more expensive, then more workers may be employed. Alternatively, machinery and equipment become cheaper then less workers may be employed.

Question 9

What can cause a change in the supply of labour?

Answer 9

1. A change in working conditions
2. Changes in the size and age of the population
3. Changes in education and training

Question 10

Why can a change in working conditions change the supply of labour?

Answer 10

A change in working conditions can cause more or less people to be motivated to work.

Question 11

What are all of the factors that affect the attractiveness of a job called?

Answer 11

The net advantages

Question 12

Why can changes in the size and age of a population change the supply of labour?

Answer 12

If the average age of a population increases, the size of the amount of labour will decrease. If a population grows, more labour will be supplied.

Question 13

Why can the education and training of the population cause a change in the supply of labour?

Answer 13

If on average more people are educated and have more training, there will be more supply for skilled jobs.

Question 14

Why do people earn different incomes?

Answer 14

1. Some people have higher abilities and qualifications than others.
2. The type of work, the work may be dangerous or at unsocial hours
3. Job satisfaction, people being satisfied with their work may compensate for lower wages.
4. Lack of information, people may not be aware of other alternatives.
5. Labour force mobility, some people may not want to live elsewhere due to a higher cost of living.
6. Fringe benefits, some jobs have lower wages because they have fringe benefits.

Question 15

Why do some people with the same job earn varying incomes?

Answer 15

1. Region - a shortage of workers in some areas may mean employers offer a higher pay.
2. Length of service - firms may pay more to workers who stay with them.
3. Fringe benefits - some firms may pay their workers less as they have fringe benefits.
4. Discrimination - people may be treated differently due to their age, gender, race or religion.