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A Level Economics:

A

Aliferoz

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In 2002 in the UK public sector fire-fighters threatened to go on strike because they stated that
their earnings were very low compared with other workers. In the same year Robbie Williams, a
singer from the UK, signed the largest ever recording deal in the music industry, worth millions of
pounds.
Discuss whether the economic theory of wages can explain how workers in a vital industry such
as the fire-fighting service can have lower pay than workers in a less vital industry such as
entertainment. [25]

Which wage differentials do we write here?
 
Qamar Baloch

Qamar Baloch

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Aliferoz said:
In 2002 in the UK public sector fire-fighters threatened to go on strike because they stated that
their earnings were very low compared with other workers. In the same year Robbie Williams, a
singer from the UK, signed the largest ever recording deal in the music industry, worth millions of
pounds.
Discuss whether the economic theory of wages can explain how workers in a vital industry such
as the fire-fighting service can have lower pay than workers in a less vital industry such as
entertainment. [25]

Which wage differentials do we write here?
Click to expand...
Dear its complete solution is given with graphs and everything in my P4 book. See there if u r using that.
 
A

Aliferoz

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Ok thankyou sir. One more thing, do imperfect PRODUCT market structures affect the wage rate in some way?
 
SalmanPakRocks

SalmanPakRocks

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Amber Rahoojo said:
can sumbody pls explain the philips curve to me. Im facing difficulty
Click to expand...

It's a simple observation by sir Phillips.
It was observed that when a country has low rate of un-employment, the inflation rate in the country is high, this is because as the national income increases, the aggregate demand increases which results in demand pull inflation, while if the unemployment level in an economy is high, then inflation is low, this is because national income is lower, and therefore people focus more on neccessities than wants, therefore the level of inflation is low.
It can be represented diagramatically by;
Phillips-curve-trade-off.png
 
A

Amber Rahoojo

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SalmanPakRocks said:
It's a simple observation by sir Phillips.
It was observed that when a country has low rate of un-employment, the inflation rate in the country is high, this is because as the national income increases, the aggregate demand increases which results in demand pull inflation, while if the unemployment level in an economy is high, then inflation is low, this is because national income is lower, and therefore people focus more on neccessities than wants, therefore the level of inflation is low.
It can be represented diagramatically by;
Phillips-curve-trade-off.png
Click to expand...

Thank you so much. :)
 
Qamar Baloch

Qamar Baloch

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SalmanPakRocks said:
It's a simple observation by sir Phillips.
It was observed that when a country has low rate of un-employment, the inflation rate in the country is high, this is because as the national income increases, the aggregate demand increases which results in demand pull inflation, while if the unemployment level in an economy is high, then inflation is low, this is because national income is lower, and therefore people focus more on neccessities than wants, therefore the level of inflation is low.
It can be represented diagramatically by;
Phillips-curve-trade-off.png
Click to expand...
Nice work sir. God bless you.
 
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