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3 questions on The Determination of Relative Wage Rates and Levels of Employment in Perfectly Competitive Labour Markets (AQA specification 1.6.3) from the A-Level Economics papers, 2018–2024. Every question links to the official mark scheme at the page its answer begins on.
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Explain how the data in Extract D (Figure 2), show that, since 2015, living standards of people working in the private sector are likely to have increased compared to those working in the public sector.
Using the data in Extract D (Figure 3), calculate how much the median care worker earns for every pound earned by the median worker in the whole economy. Give your answer to the nearest penny.
Extract E (lines 4–5) claims that workers in the 18th century saw wages rise in line with productivity. With the help of a diagram, explain how advances in modern technology are likely to lead to rising wages in some industries.
1.6.3 Wages in Competitive Labour Markets · 1.4.1 Production and Productivity
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