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Economics (AS & A Level) · Feb / March 2022 · Paper 32 · Question 17

9708Labour market forces and government intervention

Wages in industry X are significantly higher than in industry Y. What could explain this difference?

  1. AWorkers in industry Y are highly mobile.
  2. BTrade union organisation in industry Y is relatively strong.
  3. CIndustries X and Y compete with each other for workers.
  4. DIndustry Y has non-monetary advantages.

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Correct answer: D. Industry Y has non-monetary advantages.

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