Quelpr
12 marksWage Differentials

CAPE Economics Unit 1 · 2016 · Paper 2 · Question 6(c)

Justify, with the aid of diagrams, why a legal minimum wage will alleviate poverty in a monopsonic labour market but not in a perfectly competitive labour market.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 6(a)(i)Define the term 'income inequality'.[2 marks]
  2. 6(a)(ii)Define the term 'poverty'.[2 marks]
  3. 6(b)(i)Outline THREE factors that could contribute to poverty.[6 marks]
  4. 6(b)(ii)Critique the human development index (HDI) as a measure of poverty.[3 marks]

More practice: the rest of this paper · more Wage Differentials questions · all CAPE Economics Unit 1 past papers