OxfordAQA International GCSE Economics: The labour market and wage determination (9214) – 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 section 3.1.5.4, The labour market, of the OxfordAQA International GCSE Economics (9214) specification (first teaching September 2023, first examined May/June 2025). The content sits in Paper 1: How markets work. All data are invented and illustrative.

Links: study guide, revision notes, course hub, checklist and free 10-minute diagnostics.

Questions

1. Which one of these would shift the supply of labour in an occupation to the left? A) A rise in pay in similar occupations B) More training places C) A rise in demand for the product D) An increase in the working-age population [1]

2. Explain what is meant by the labour market. [2]

3. The table shows the market for fruit pickers in illustrative Region B. Wages are in cu per hour.

Wage	5	6	7	8	9	10
Demand (workers)	90	78	66	54	42	30
Supply (workers)	18	30	42	54	66	78

(a) State the equilibrium wage and the number of pickers employed. [2] (b) Calculate the total wage bill per hour at equilibrium. [1]

4. Demand in the market in question 3 rises by 24 pickers at every wage. Demand is now 174 - 12W, where W is the wage. Supply is still 12W - 42.

(a) Find the new equilibrium wage and employment. [2] (b) Work out how much the wage and employment have risen, as percentages of their question 3 values. [2] (c) Explain one possible cause of the rise in demand. [2]

5. The government sets a legal minimum wage of 10 cu in the market in question 3.

(a) Calculate the surplus of labour at this wage. [2] (b) Explain one group that gains and one group that loses. [4]

6. Explain two reasons why a hospital surgeon earns more than a shop assistant. [4]

7. Explain two reasons why two bus drivers working for different companies might earn different pay. [4]

8. Occupation X pays 18 cu per hour and occupation Y pays 9 cu per hour.

(a) Calculate by what percentage X pays more than Y. [2] (b) Calculate weekly pay for each for a 38-hour week. [2] (c) X’s wage then rises by 5% and Y’s by 10%. Calculate both new wages and say what happens to the gap in cu and to the percentage gap. [4]

9. A training college opens, adding 24 workers to labour supply at every wage in the market in question 3. Supply becomes 12W - 18. Describe a diagram showing the effect and state the new wage and employment. [4]

10. Explain how occupational and geographical immobility help explain why wage differentials persist. [4]

11. Discuss whether wages are determined only by demand and supply. [8]

12. In illustrative Country C the market for care assistants has demand of 400 - 10W and supply of 10W - 100. The employer group pays 20 cu per hour.

(a) Calculate the shortage of care assistants at 20 cu. [2] (b) Evaluate whether raising the wage is the best way to remove the shortage. [8]

Answers

1. A [1] because workers move to better-paid similar jobs, so fewer offer to work at each wage here. [1] Examiner insight: Option B and D would shift supply right and C shifts demand, so check which curve each option moves before choosing.

2. A market in which firms (employers) demand labour [1] and households supply their work, which sets the wage and employment [1]. [2] Examiner insight: A good answer names both sides and what the market sets; a bare “where people work” is incomplete.

3. (a) Demand equals supply at 8 cu [1] with 54 pickers employed [1]. [2] (b) 8 × 54 = 432 cu per hour [1]. [1] Examiner insight: Show the multiplication and give the unit; a figure without the wage and employment it comes from is hard to credit.

4. (a) 174 - 12W = 12W - 42, so 24W = 216 [1]; W = 9 cu and 66 pickers [1]. [2] (b) Wage: (9 - 8) / 8 × 100 = 12.5% rise [1]. Employment: (66 - 54) / 54 × 100 = 22.2% rise [1]. [2] (c) Demand for pickers is derived from demand for fruit [1], so higher consumer demand for fruit makes firms want more pickers (or higher productivity makes each picker more valuable) [1]. [2] Examiner insight: Link the cause to labour specifically; “more people buy” needs the step that firms therefore hire more.

5. (a) At 10 cu demand is 150 - 120 = 30 [1] and supply is 120 - 42 = 78, so the surplus is 48 workers [1]. [2] (b) Gain: pickers who keep their jobs earn 10 cu instead of 8 cu [1], an increase of 2 cu per hour, because the wage is above equilibrium [1]. Lose: employment falls from 54 to 30 [1], so 24 workers lose jobs, and farmers face higher costs [1]. [4] Examiner insight: Name each group and give a consequence supported by the figures; saying “workers gain” alone does not say how.

6. Reason 1: surgery needs many years of costly training [1], so few people can supply the labour and the wage is higher [1]. Reason 2: a surgeon’s work has a high value, with productivity and demand to match [1], so employers pay more to hire one [1]. [4] Examiner insight: Tie each reason to supply or demand. Two causes named but not developed gain little.

7. Reason 1: company size or profitability differs [1], so a firm with higher profits can afford to pay more [1]. Reason 2: experience or length of service [1], since longer-serving drivers are more productive and are paid more [1]. (Other valid reasons: location, shifts, bonuses.) [4] Examiner insight: Within-occupation answers should refer to the worker or employer, not to the occupation as a whole.

8. (a) (18 - 9) / 9 × 100 [1] = 100% [1]. [2] (b) X: 18 × 38 = 684 cu [1]. Y: 9 × 38 = 342 cu [1]. [2] (c) X: 18 × 1.05 = 18.90 cu; Y: 9 × 1.10 = 9.90 cu [1] [1]. The gap in cu is 18.90 - 9.90 = 9.00, so unchanged [1]. The percentage gap falls to 18.90 / 9.90 = 1.909, so X pays 90.9% more [1]. [4] Examiner insight: Distinguish the gap in cu from the percentage gap; a claim that the differential “narrowed” needs to say which measure.

9. With the wage up the side and workers along the bottom, supply shifts right from S to a new supply curve [1] while demand is unchanged [1]. The wage falls from 8 to 7 cu [1] and employment rises from 54 to 66 [1], found from 150 - 12W = 12W - 18. [4] Examiner insight: Describing a diagram means naming axes, the curve that shifts, its direction and the new equilibrium.

10. Occupational immobility: workers lack the skills for jobs that pay more [1], so supply in high-paid jobs stays small and the wage stays high [1]. Geographical immobility: workers cannot or will not move to areas with higher wages [1], so shortages and surpluses persist and local pay gaps remain [1]. [4] Examiner insight: Define each type through its effect on the labour supply and then say what that does to pay.

11. Demand and supply are central: product demand and productivity set labour demand, while training and alternatives set supply [1], and where they meet fixes wage and employment [1]. Other factors alter this: trade unions can bargain wages above equilibrium [1], which cuts jobs; a minimum wage can do the same [1]. A large employer with few rivals can hold wages down [1] because workers have few alternatives. Differences in experience and performance pay also change pay for individuals [1]. Judgement: demand and supply set the overall level in most cases [1], particularly over the long term, but union power or regulation matter more in particular jobs, so wages are not determined only by demand and supply [1]. [8] Examiner insight: Reach a clear conclusion that weighs the factors, rather than simply listing influences.

12. (a) At 20 cu demand is 400 - 200 = 200 [1] and supply is 200 - 100 = 100, so the shortage is 100 [1]. [2] (b) Support: setting demand equal to supply gives 20W = 500, so W = 25 cu [1], where demand and supply are both 150 [1]. A higher wage pulls in more workers [1] and removes the shortage with 50 extra staff [1]. Against: the extra pay raises costs for employers and may be passed on to fees [1]; training takes time, so supply may respond slowly [1]; other options include training or recruiting from abroad [1]. Judgement: raising the wage is probably the quickest way to fill vacancies, but the best solution depends on cost and time [1]. [8] Examiner insight: Use the figures given and then weigh alternatives; an evaluation that has no comparison cannot support a judgement.

Where marks are usually lost

• Naming a cause without linking it to the demand or supply curve.
• Calling a change in the wage a shift in the curve.
• Mixing up shortage and surplus.
• Leaving out units or the base figure in percentage changes.
• Using “the occupation” instead of a worker or firm for within-occupation differences.
• Listing factors in a discuss or evaluate question without a conclusion.
• Describing a diagram without naming axes and the new equilibrium.

Next steps

• Re-read the revision notes and the study guide.
• Visit the course hub and tick off the checklist.
• Try all the free 10-minute diagnostics at /diagnostics/.
• Book a free trial class: /trial/.

Official syllabus

OxfordAQA International GCSE Economics (9214), version 1.0, for exams May/June 2025 onwards, published by OxfordAQA. Section 3.1.5.4, The labour market.