Easy2 marksStructured
How markets workGeneralLabour MarketWagesSupply and Demand

AQA GCSE · Question 19.2 · How markets work

Explain one reason why Tharun may earn more than a cleaner.

How to approach this question

1. Apply the concepts of labour supply and demand. 2. Identify a factor that makes the supply of veterinary surgeons low (e.g., long training, high skill requirement). 3. Explain that this low supply, relative to demand, results in a higher wage compared to a job with a large labour supply like a cleaner.

Full Answer

Wage differentials between occupations can be explained by the theory of supply and demand in the labour market. A veterinary surgeon's job requires years of university education and specialised training. This creates a high barrier to entry, limiting the supply of people who can do the job. In contrast, cleaning is a low-skilled job with minimal training requirements, meaning there is a very large supply of potential workers. Given that there is demand for both services, the relative scarcity of veterinary surgeons compared to the abundance of cleaners leads to a much higher equilibrium wage for vets.

Common mistakes

Simply stating that one job is 'harder' or 'more important' without using economic terminology like supply, demand, skills, or training.

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