Cambridge IGCSE Economics: Workers, wages and trade unions (0455) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

This set tests sections 3.3 (Workers) and 3.4 (Trade unions) of the Cambridge IGCSE Economics 0455 syllabus for examination in 2026. All countries, firms and figures are invented. Teaching is in the study guide and the revision notes. Other links: Microeconomic decision makers, the Cambridge IGCSE Economics hub, the printable checklist and the free diagnostics.

Questions

1. Define a trade union. [2]

2. Explain two non-wage factors that may influence a person’s choice of occupation. [4]

3. Job X pays 3,000 a month. Job Y pays 2,700 a month plus a bonus of 450 a month.

(a) Calculate the monthly money reward from job Y. [1] (b) State which job has the higher money reward. [1] (c) Explain one reason why a worker might still choose the other job. [2]

4. The table shows the market for warehouse workers in Country B (invented).

Hourly wage	Workers demanded	Workers supplied
8	1,600	1,000
9	1,500	1,200
10	1,400	1,400
11	1,300	1,600
12	1,200	1,800

(a) State the equilibrium wage and the number employed. [2] (b) A training scheme raises supply by 300 workers at every wage. State the new equilibrium wage and employment. [3] (c) Calculate the percentage change in the wage. [1]

5. The government of Country B sets a minimum wage of 12 in the market above.

(a) Calculate the number of workers who want a job but cannot find one. [2] (b) Calculate the percentage change in the hourly wage bill compared with equilibrium. [2] (c) Evaluate whether the minimum wage helps low-paid workers. [4]

6. Explain why electricians usually earn more than cleaners. [4]

7. In a country, average pay for men is 22.5 an hour and for women 18.

(a) Calculate the pay gap as a percentage of men’s pay. [2] (b) Explain how discrimination could cause such a gap. [3] (c) State one government policy to reduce it. [1]

8. In Country C, average monthly pay is 2,400 in the public sector and 3,000 in the private sector.

(a) Calculate by what percentage public pay is below private pay. [2] (b) Explain why some workers still choose public-sector jobs. [3]

9. A tailoring workshop has eight workers. Each makes 6 jackets a week alone. After tasks are divided, the workshop makes 72 jackets. Each worker is paid 90 a week.

(a) Calculate the percentage rise in output per worker. [2] (b) Calculate the labour cost per jacket before and after. [2] (c) Discuss the disadvantages of division of labour for workers and for the economy. [4]

10. A firm employs 60 workers on 350 a week. The union and firm agree a rise of 4%.

(a) Describe what is meant by collective bargaining. [2] (b) Calculate the rise in the yearly wage bill (52 weeks). [3] (c) Inflation had been 6% with a pay rise of 4%. Explain what happened to real pay. [2] (d) In another dispute, 150 workers on 70 a day strike for 5 days. Calculate the wages lost. [2]

11. A union has 168 members among 480 workers in an industry.

(a) Calculate union membership as a percentage of workers. [1] (b) Explain two factors that would raise the union’s strength. [4] (c) Evaluate the advantages and disadvantages of strong union activity for firms and the government. [6]

Answers

1. An organisation of workers [1] that aims to protect and improve members’ pay and working conditions [1]. [2] Examiner insight: A good definition says who the members are and what the body is for; “a group that goes on strike” describes one action, not the body.

2. Any two, each with a reason: job security [1] because a stable income lets the worker plan and repay loans [1]; flexible hours [1] because they fit around childcare or study [1]. [4] Examiner insight: Naming a factor and explaining its effect on the choice are separate points; a list of four factors with no link to the decision gains little.

3. (a) 2,700 + 450 = 3,150 [1] (b) Job Y [1] (c) Job X may have shorter hours or a shorter journey [1], which the worker values more than the extra 150 [1]. [4] Examiner insight: Use the figures from the question when comparing; the comparison must be of the full money package, not the basic pay.

4. (a) Demand equals supply at 10 [1]: wage 10, employment 1,400 [1] (b) Supply is now 300 higher at each wage: at 9, supply is 1,500 and demand is 1,500 [1], so wage 9 [1] and employment 1,500 [1] (c) (9 - 10)/10 = -10% [1] [6] Examiner insight: Show which row you used; a bare “9” with no matching employment figure leaves a gap, and a rise in supply must lower the wage.

5. (a) At 12, supply is 1,800 and demand 1,200 [1]: 1,800 - 1,200 = 600 [1] (b) Before: 10 x 1,400 = 14,000 [1]. After: 12 x 1,200 = 14,400, a rise of 400/14,000 = 2.9% [1] (c) Workers kept in jobs earn 20% more per hour [1]; but 200 jobs are lost and 600 are left unemployed in total [1]; firms face higher costs and may use machines [1]; judgement, such as that it helps if few jobs are lost and harms if many [1]. [8] Examiner insight: An evaluation needs a judgement tied to something the answer depends on; saying only “it has good and bad effects” stops short of that.

6. Electricians need long training, so supply is small [1]; their work is valuable, so demand is high [1]; the diagram shows a high equilibrium wage [1] while cleaners are plentiful and need little training, so supply is large and the wage low [1]. [4] Examiner insight: Linking each reason to a supply or demand curve scores better than saying one job is harder.

7. (a) 22.5 - 18 = 4.5 [1]; 4.5/22.5 = 20% [1] (b) Employers treat women worse for reasons unrelated to skill [1]; demand for women in better-paid jobs falls [1]; so women earn less than equally productive men [1] (c) Equal pay laws [1] [6] Examiner insight: State the base of the percentage; dividing by the lower figure gives a different answer and does not answer “as a percentage of men’s pay”.

8. (a) 3,000 - 2,400 = 600 [1]; 600/3,000 = 20% [1] (b) Public jobs may offer greater job security [1], a good pension [1], so the lower wage is offset by non-wage benefits [1]. [5] Examiner insight: A reference to non-wage benefits must name the benefit; “better conditions” alone is vague.

9. (a) Before: 6 per worker; after: 72/8 = 9 [1]; (9 - 6)/6 = 50% [1] (b) Before: 90/6 = 15 [1]; after: 90/9 = 10 [1] (c) Workers may find tasks repetitive and lose satisfaction [1]; skills become narrow so moving jobs is hard [1]; the economy can suffer structural unemployment if a specialised industry declines [1]; judgement, for example that higher output usually outweighs these costs if retraining is available [1]. [8] Examiner insight: Both groups in the question need separate points; two points on workers alone cannot cover the economy.

10. (a) Union representatives negotiate for all members [1] with the employer over pay and conditions [1] (b) Before: 60 x 350 x 52 = 1,092,000 [1]; after: 60 x 364 x 52 = 1,135,680 [1]; rise 43,680 [1] (c) Pay rose 4% but prices rose 6% [1], so real pay fell (by about 1.9%) [1] (d) 150 x 5 x 70 = 52,500 [2] [9] Examiner insight: Show the multiplication; for real pay, compare the rise with inflation and state the direction.

11. (a) 168/480 = 35% [1] (b) High membership [1] because the union speaks for most workers and a strike would stop output [1]; scarce skills [1] because strikers cannot easily be replaced [1] (c) Firms: higher pay raises costs [1], but a single bargaining partner and motivated staff help [1]. Government: fewer disputes and a voice for workers [1], but pressure for costly policy and price rises [1]. Judgement based on strength of the union and the state of the economy [2]. [11] Examiner insight: Cover both firms and government and finish with a reasoned conclusion; a one-sided list lacks the evaluation the command word asks for.

Where marks are usually lost

• Giving a trade union definition that omits pay or conditions.
• Naming a non-wage factor without explaining how it affects the choice.
• Reading the wrong row from a wage table.
• Forgetting that a minimum wage below equilibrium has no effect.
• Using the wrong base in a percentage gap.
• Treating a rise in supply as raising the wage.
• Giving only workers’ views on division of labour or unions.
• Skipping a judgement in an evaluation question.

Next steps

• Review with the revision notes and the study guide.
• Go to the course hub and tick off the checklist.
• Try all free 10-minute diagnostics.
• Book a free trial class.

Official syllabus

Cambridge IGCSE Economics 0455 syllabus for examination in 2026, version 2, published by Cambridge University Press & Assessment, sections 3.3 and 3.4.