gcse economics - how we work- wages and salaries
How are people paid? What factors determine why some people get paid more than others?
WAGE
An individuals payment usually for a weeks work
SALARY
An individuals payment usually for a months work
HIGHER WAGES USUALLY RESULT FROM
- Skills
- Qualifications / training
- Special talents (footballer / rock star)
- Experience
- Dangerous work
- Supply and demand of labour
SUPPLY AND DEMAND FOR LABOUR
In the diagram above:
Supply of labour:The number of workers willing to work at each wage rate
Demand for labour The number of workers required at each wage rate
Where supply = demand is the equilibrium wage rate (£5 in this case)
The lower the supply of labour for a particular industry the higher the wage rate e.g. professional footballers
The greater the supply of labour for a particular industry the lower the wage rate e.g. cleaners
These GCSE Economics revision notes have been kindly provided by Peter Davies of Mill Hill School, Ripley Keep Up-todate with your GCSE Economics - Subscribe Free to Economics in the News by Email
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