Cambridge O Level Economics: Workers, wages and specialisation (2281) – 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.

These questions cover sections 3.3.1 to 3.3.4 of the Cambridge O Level Economics 2281 syllabus for examination in 2026. The syllabus is not tiered. All places, firms and figures are invented. Learn the content from the study guide and the revision notes. The course hub and printable checklist show what else to cover, and the free diagnostics find your weak areas.

Questions

1. Identify two non-wage factors that may affect a person’s choice of occupation and explain how each might influence the choice. [4]

2. Job X pays 3,150 a month for 21 working days of 8 hours, with 2 hours of commuting each day. Job Y pays 2,940 a month for 21 working days of 8 hours, working from home.

(a) Calculate the pay per hour committed (working hours plus commuting hours) for each job. [4] (b) Calculate by what percentage the monthly pay of Job X exceeds that of Job Y. [2] (c) Explain why a worker might still choose Job X. [2]

3. The table shows the market for security guards in Region R (illustrative). Wage is per hour.

Wage	7	8	9	10	11
Demand (guards)	650	600	550	500	450
Supply (guards)	350	450	550	650	750

(a) Use the table to find the equilibrium wage and employment. [2] (b) A minimum wage of 10 is introduced. Calculate the number employed, the number of jobs lost and the surplus of labour. [3] (c) Calculate the change in the total wage bill caused by the minimum wage. [2] (d) Demand then rises by 150 guards at every wage. State the new equilibrium wage and number employed. [2] (e) Explain what now happens to the effect of the minimum wage of 10. [2] (f) Give one reason why demand for security guards might have risen. [1]

4. A worker in Country C earns 8,000 a year unskilled. Training takes 2 years with no earnings and costs 4,000 in fees. A trained worker then earns 13,000 a year.

(a) Calculate the total cost of training. [2] (b) Calculate how many years of the extra pay are needed to pay back that cost. [2] (c) Explain how this helps to explain why skilled workers earn more than unskilled workers. [2]

5. In Country D, average annual earnings (thousands) are 5.0 in the primary sector, 8.0 in the secondary sector and 11.5 in the tertiary sector. Employment shares are 40%, 20% and 40% respectively.

(a) Calculate by what percentage tertiary earnings exceed primary earnings. [2] (b) Calculate by what percentage primary earnings are below tertiary earnings. [2] (c) Calculate average earnings across the whole economy. [2]

6. In Town Z, men earn on average 20.0 an hour and women 16.2.

(a) Calculate the gender pay gap as a percentage of male pay. [2] (b) Explain two reasons for a gender pay gap. [4] (c) State one government policy that could reduce the gap. [1]

7. A public sector job pays 2,400 a month plus a pension contribution of 15% of pay. A private sector job pays 2,600 plus 5%.

(a) Calculate the value of each package and say which is higher. [3] (b) Explain why public sector pay may be set differently from private sector pay. [3]

8. A furniture workshop has 5 workers paid 60 a day each. Working alone, each makes 4 chairs a day. With division of labour the workshop makes 25 chairs a day.

(a) Calculate the labour cost per chair when the workers work alone. [2] (b) Calculate the labour cost per chair after division of labour and the percentage fall. [2] (c) Calculate the percentage rise in output per worker. [2]

9. Discuss whether division of labour benefits an economy. [8]

10. (a) Explain, using a labour market diagram described in words, how discrimination might lower the wage of one group of workers. [4] (b) State one government policy to reduce discrimination and one limit on its effectiveness. [2]

11. Explain why a surgeon usually has stronger bargaining power than a cleaner. [5]

Answers

1. First factor identified, such as job security [1]; explained, for example a secure job lets a worker plan, so a worker may accept lower pay [1]. Second factor, such as the journey to work [1]; explained, for example a long commute costs time and money, so a worker may refuse a distant job [1]. [4] Examiner insight: A factor named but not linked to a choice is a description, not an explanation; always say what the factor makes a worker more or less likely to do.

2. (a) Job X hours: (8 + 2) × 21 = 210 [1]; 3,150 ÷ 210 = 15.00 [1]. Job Y hours: 8 × 21 = 168 [1]; 2,940 ÷ 168 = 17.50 [1]. (b) (3,150 − 2,940) ÷ 2,940 [1] = 210 ÷ 2,940 = 7.1% [1]. (c) Job X may have non-wage benefits such as promotion prospects or training [1], or the worker may value the higher monthly income or the office environment more than the time cost [1]. [8] Examiner insight: Writing the hours committed beside each result lets a reader see your method, and the base of the percentage in (b) is the lower-paid job.

3. (a) Demand equals supply at 550 [1]: wage 9, employment 550 [1]. (b) At 10, demand gives employment of 500 [1]; jobs lost 550 − 500 = 50 [1]; surplus 650 − 500 = 150 [1]. (c) Before: 9 × 550 = 4,950 [1]; after: 10 × 500 = 5,000, an increase of 50 [1]. (d) New demand at 10 is 650 and supply is 650 [1]: wage 10, employment 650 [1]. (e) The market wage now equals the minimum [1], so the minimum no longer causes a surplus or lost jobs: it is no longer binding [1]. (f) For example, more shops and offices opened, raising the demand for security [1]. [12] Examiner insight: Show demand and supply separately at the new wage; surplus is supply minus demand, not the change in employment, and mixing them up is a common slip.

4. (a) Earnings lost: 2 × 8,000 = 16,000 [1]; plus fees: 20,000 [1]. (b) Extra earnings: 13,000 − 8,000 = 5,000 a year [1]; 20,000 ÷ 5,000 = 4 years [1]. (c) Training is costly and delays earnings, so fewer people choose it and supply of skilled workers is smaller [1]; skilled workers must be paid more to make training worthwhile, so the wage is higher [1]. [6] Examiner insight: Link the calculation back to supply; a number alone does not explain an earnings difference.

5. (a) (11.5 − 5.0) ÷ 5.0 [1] = 130% [1]. (b) (11.5 − 5.0) ÷ 11.5 [1] = 56.5% [1]. (c) 0.4 × 5.0 + 0.2 × 8.0 + 0.4 × 11.5 = 2.0 + 1.6 + 4.6 [1] = 8.2 (thousand) [1]. [6] Examiner insight: The question wording tells you the base: “exceed primary” means divide by the primary figure and “below tertiary” means divide by the tertiary figure.

6. (a) (20.0 − 16.2) ÷ 20.0 [1] = 19.0% [1]. (b) Reason 1: discrimination, so employers pay women less or keep them out of better-paid jobs [1], lowering average female earnings [1]. Reason 2: part-time work and career breaks for caring [1], which reduce hours and promotion [1]. (Crowding into few occupations also gains credit.) (c) Equal pay legislation [1]. [7] Examiner insight: Two different reasons each need a developed link to pay; a bare list of causes earns little.

7. (a) Public: 2,400 × 1.15 = 2,760 [1]; private: 2,600 × 1.05 = 2,730 [1]; the public package is higher by 30 [1]. (b) The government is the employer and sets pay scales [1], with a limited budget funded by taxation [1], so pay depends less on profit and local supply and demand [1]. [6] Examiner insight: Comparing basic pay alone would reverse the ranking, so say that you are comparing the whole package.

8. (a) Alone: 5 × 4 = 20 chairs [1]; wage bill 5 × 60 = 300, so 300 ÷ 20 = 15.00 [1]. (b) 300 ÷ 25 = 12.00 [1]; fall (15 − 12) ÷ 15 = 20% [1]. (c) Output per worker rises from 4 to 25 ÷ 5 = 5 [1]; (5 − 4) ÷ 4 = 25% [1]. [6] Examiner insight: Work out the wage bill once and reuse it; the unit cost falls because the same bill is spread over more chairs.

9. Advantage: output rises as workers become skilled at one task [1], so more goods are available and prices can fall [1]. Advantage: lower costs let firms compete, which can raise exports [1], increasing national income [1]. Disadvantage: if a specialist industry declines, workers with narrow skills may not move to new jobs, causing structural unemployment [1], which wastes resources and cuts output [1]. Judgement: benefits are greater in large markets with training and mobile workers, and smaller where skills are narrow [1]; a reasoned overall conclusion [1]. [8] Examiner insight: A discussion answer usually gains by weighing the two sides and saying what the outcome depends on, rather than listing advantages and then disadvantages.

10. (a) Draw wage against quantity of labour for the group [1]. Employers’ discrimination reduces demand for that group, so the demand curve shifts left [1]. The new equilibrium shows a lower wage and lower employment [1], so the group is paid less than equally able workers elsewhere [1]. (b) Equal pay or anti-discrimination law [1]; limit: it is hard to prove or enforce, or discrimination may be hidden in hiring [1]. [6] Examiner insight: Name the axes and the shifting curve in words; an unlabelled description cannot show the wage effect.

11. Surgeons have scarce skills because training takes many years [1], so supply is small [1]. Demand for them is high because their work is highly valuable [1]. They are hard to replace, so an employer would lose more from a dispute [1]. Professional bodies can limit entry and act together [1]. Cleaners are easily replaced, which weakens their position. [5] Examiner insight: Contrast the two groups through a shared cause, supply and replaceability, rather than describing each separately.

Where marks are usually lost

• Naming a factor, but not saying how it changes a choice.
• Dividing by the wrong figure in a percentage difference.
• Forgetting commuting hours when asked for time committed.
• Reading demand and supply at the wrong wage in a table.
• Saying a minimum wage always causes unemployment, without checking whether it is above equilibrium.
• Giving a cost saving from division of labour without showing the output change that causes it.
• Ranking pay without comparing the full package.
• Stating a conclusion in a “discuss” answer without any reason or condition.

Next steps

• Recap with the revision notes and the study guide.
• Use the course hub and the printable checklist.
• Find gaps with the free 10-minute diagnostics, then rework any missed question.
• Book a free trial class to talk through questions you missed.

Official syllabus

Cambridge O Level Economics 2281, syllabus for examination in 2026, version 2, section 3.3 (Workers), Cambridge Assessment International Education, part of Cambridge University Press & Assessment.