

Factors affecting choice of occupation.
Differences in earning patterns
What do you want to do? Rank the opportunities in terms of their attractiveness. WHY are
they in that order?
Compare lists. Are there any core themes running through your lists? Is there anything else
that people could have/did put?
Why do different people earn different amounts? Brain storm ideas. Then try to fit them into
economic terminology/ideas.
 Wage/non wage factors
 Elasticity of S
 Scarcity of skils
 Subs of machinery
 Discrimination. Is that all that it is?
 Wages can be divided into transfer earnings (minimum payment to a factor needed to
keep it in its present place of employment) and economic rent. Anything above transfer
earnings is economic rent. Madonna's wage largely consists of economic rent
Demand is derived demand.
EXAM QUESTION
3 (a) Explain the terms scarcity and opportunity cost. [4]
(b) Describe the factors that affect an individual’s choice of occupation and show how
the idea of opportunity cost might be relevant to that choice. [6]