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Economics (AS & A Level) · May / June 2025 · Paper 32 · Question 14

9708Labour market forces and government intervention

The diagrams show the demand for and supply of labour. [three diagrams: wage rate vs quantity of labour, with areas 1, 2, 3, 4 marked] Which two areas represent transfer earnings?

  1. A1 and 3
  2. B1 and 4
  3. C2 and 3
  4. D2 and 4

As printed in the paper

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Correct answer: C. 2 and 3

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