Microeconomic Decision Makers · 4 question types
Past paper frequency (2018 to 2024)
This topic accounts for approximately 8% of your exam marks.
Wage determinants, minimum wage effects, and trade union impact appear regularly in Section B; typically 6 to 10 marks.
Workers do not pick jobs on pay alone. The syllabus splits the influences on an individual's choice of occupation into factors and non-wage factors.
| Type of factor | Examples |
|---|---|
| Wage factors | Basic pay, overtime rates, bonuses, commission, pay rises linked to inflation |
| Non-wage factors | Holiday entitlement, pension, healthcare and other fringe benefits, job security, working hours, training and promotion prospects, location, prestige and status, the working environment |
A job with a lower wage but generous non-wage benefits (long holidays, flexible hours, a good pension) can still attract many applicants. A high-paying job with long hours, dangerous conditions or a remote location may struggle to fill posts, which is why such jobs often pay a , extra pay to make up for the unattractive features.
Explain reasons people choose / leave an occupation (4 marks)
What comes up: "Analyse two reasons why fewer people may have decided to become [an occupation]" or "Explain two non-wage factors that influence the choice of occupation" — typically 4 marks, two points each developed once.
Write (two marks each): (1) Wage level — if the pay of that job is low or has fallen, the work is less financially rewarding and people can earn more in another occupation, so fewer choose it. (2) Working conditions — poor conditions such as long hours, large workloads or stressful duties put workers off, even when pay is reasonable. (3) Qualifications required — a job that needs long or expensive training discourages entrants, keeping the number of applicants low.
Watch out: Develop each factor, do not just list it. "The pay is low" earns the identification mark; you need the consequence ("so workers can earn more elsewhere and choose a different occupation") to earn the second mark.