Which of the following is most likely to increase the earnings of workers in a particular occupation?

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Question

Which of the following is most likely to increase the earnings of workers in a particular occupation?

Accepted Answer

An increase in the length of training required — Award 1 mark for understanding that longer training creates barriers to entry, reducing supply and increasing wages. A is incorrect — increased supply would lower wages. B is incorrect — decreased demand for output reduces derived demand for labour, lowering wages. D is incorrect — weaker unions reduce bargaining power.

Answer

A decrease in trade union membership

Answer

A decrease in the demand for the product they produce

Answer

An increase in the length of training required

Answer

An increase in the supply of workers to that occupation

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