Question 19M.3.HL.TZ0.3h
| Date | May 2019 | Marks available | [Maximum mark: 2] | Reference code | 19M.3.HL.TZ0.3h |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | State | Question number | h | Adapted from | N/A |
Table 1 provides information about Fairland.
Table 1
Figure 6 illustrates Fairland’s demand (D) for and supply (S) of low-wage labour.
Figure 6
In order to raise the living standards of low-wage workers, the government of Fairland has decided to impose a minimum wage of $10 per hour.
The marginal rates of income tax in Fairland are given in Table 2.
Table 2
State two market-based supply-side policies that are likely to increase the supply of labour in Fairland.
[2]
Examiners should be aware that some candidates may take alternative approaches, which, if appropriate, should be fully rewarded eg cuts in employee social security contributions.
As for part (g), a range of policies suggested were not market-based nor would they influence the supply of labour. An increase in the minimum wage, for example, is not market-based.
