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JAMB Economics 1984 Question 5

Question 5

Labour Market

In discussing the reasons why wages differ between occupations, which of the following should be regarded as a cardinal point that needs to be emphasized?

  1. A.Length and cost of training
  2. B.Demand and supply
  3. C.Attractiveness of the job
  4. D.Influence of trade unions
  5. E.Government intervention.
Show the answer and explanation

Answer: B (Demand and supply)

Explanation

Wages are the price of labour, so differences between jobs come down to differences in the demand for and supply of each kind of labour; the other factors work through demand and supply.