2015
ECONOMICS SBA
The St. Michael School
Introduction to the CAPE Economics School Based Assessment
The internal assessment contributes 20% to the candidates’ final mark. It takes the form of a
report (2000-2500 words) which should be presented in a soft folder (A4 size), typed in Times
New Roman, font size 12 and double spaced. Each Section must start on a new page.
The School Based Assessment (SBA) will be submitted in a series of drafts once information has
been collected.
The research project provides an opportunity for candidates to demonstrate that they have a
comprehensive knowledge of applicable theories, concepts and models that they would have
learned during their course of study. The candidates have the chance to apply economic concepts
and principles to solve everyday problems.
The objectives to be attained by the end of the project should be based on the content of one, two
or all three modules of the unit.
Format
The project should have the following format:
(a)
Title page
(b)
Acknowledgements
(c)
Introduction
(d)
Methodology
(e)
Report which includes:
(f)
(i)
Presentation of data
(ii)
Analysis of data
(iii)
Evaluation
(iv)
Recommendations
Appendices
(i) Questionnaire
(ii) Letter to Organisation
(g)
Bibliography
Introduction
The introduction introduces the reader to the topic which is being researched. Secondly, it must
state the aims and objectives the researcher hopes to achieve when completing the project. Aims
are only general statements. To get more specific the candidate should state objectives which
help you achieve the aim. There should be at least two (2) aims and three (3) objectives. Always
begin each objective with the word ‘To’. Last but not least give a brief background of the
business. See sample SBA.
Your objectives should begin with terms such as:



To determine
To evaluate
To what extent
Methodology
This section discusses the techniques and process the researcher followed in order to collect data
for the research. It includes:

Discussion of the methodology used in the research (e.g. case study, primary research,
secondary research).

Outline the research design (e.g., quantitative, qualitative).

Give details of the type and sample size and who were the participants in your study.

List and briefly describe all the instruments (e.g., surveys, observations, interviews,
questionnaires) used in your study for data collection and discuss their advantages in using
these instruments.

Give a brief description of how, when (in what order) and where the instruments were
administered (for example, field, classroom or laboratory procedures) and how the data was
recorded.

Discuss how you plan to analyse the data (e.g. Using descriptive statics)

Identify any limitations in the study.
Report
The report consists of the Presentation of Data, Analysis of Data and Evaluation of Data.
This must be between 2000-2500 words.
Presentation of Data
This section gives details of all the results of your study. . Present the findings/results in tables or
charts where appropriate. The words used in tables, charts and graphs are not counted in the
word limit. The results should be reported with respect to providing evidence for your research
objectives.
Analysis of Data
This section is to tie in the findings with any relationships to economic literature of concepts,
models, theories and laws that relates to your study. In other words you will match what you find
to the literature (You are answering the question are your findings consistent with any economic
literature). The best way to tackle the analysis is to define concepts, state laws or theories and
give features of economics from literatures and then show how the law/concept/theory/feature is
put into practice in the research. Sometimes the candidate might realise that the economic theory
is not reflected in the results of the research.
Evaluation
This section gives an overall conclusion about the results found in the study. It should also state
if it would have any positive or negative impacts in society.
Recommendations
Any research should identify problems. The researcher should make suggestions as to how any
problems could be solved.
Bibliography
This is a record of all sources cited in the School Based Assessment. The bibliography should
contain at least three sources. Sources should be written in alphabetical order as follows:
For texts
Author(s) last name, Author(s) initials. (Year of publication in brackets). Name of source in
italics. Place of publication: Publisher
For websites
Full website as it appears in the address bar and the date the website was extracted
For online articles/publications
Author(s) last name, Author(s) initials. (Year of publication in brackets). Name of source in
italics. Retrieved date, from website
MARK SCHEME
MARKING SCHEME FOR INTERNAL ASSESSMENT
Knowledge/Presentation/Methodology (14 marks)
(Includes marks for communicating information in a logical way using correct grammar)
The student has:
1.
demonstrated a grasp of the meaning of basic economic facts, concepts and principles;
2.
explained familiar economic phenomena in terms of theories, models, laws and
principles;
3.
developed a research design that provides a sound and efficient basis for drawing
reasonable conclusions.
Application/Analysis (20 marks)
(Includes marks for communicating information in a logical way using correct grammar)
The student has:
1.
used the major economic concepts, principles and procedures in unfamiliar situations,
transformed economic data accurately and appropriately, used common characteristics as
a basis for classification;
2.
identified and recognised the component parts of an economic theory or concept and
interpreted the relationships between these parts;
3.
inferred, predicted and drawn conclusions using relevant economic data;
4.
made relevant and accurate calculations and recognised the limitations of economic data;
5.
selected appropriate economic theories – matched, compared and cited appropriate
examples in familiar situations.
Evaluation Synthesis (17 marks)
(Includes marks for communicating information in a logical way using correct grammar)
The student has:
1.
combined component parts to form a new meaningful whole, made predictions and
solved problems;
2.
made reasoned judgements and recommendations based on the value of ideas and
information.
Communication (9 marks)
Candidates will be awarded 9 marks, for communicating information in a logical way using
correct grammar.
The student has:
1.
presented arguments in a clear, concise, reasoned and objective manner using correct
grammar;
2.
used presentation aids such as graphs, charts and tables to communicate information in a
logical way;
3.
displayed logic and coherence in expressing economic arguments;
4.
used proper referencing and citations of source materials. Using the example of the
standard Chicago manual style is recommended.
SAMPLE SBA 1
Introduction
Wage differentials can be defined as the differences in wage rates between workers in the
same industry or between those with comparable skills in different industries or localities.
Various factors can affect the wages distributed within a company or an industry. Some of the
relevant factors can include; different skill levels, differences in productivity and revenue
creations and employer discrimination.
Differences in wages exist within many industries. For example, the industry that will be
used in this research project is the food service industry. To be more specific, the company M.I.S
Products Limited. M.I.S Products is a food and flavoring manufacturing and packaging
company. The company has been established since 1979 and can be described as a family
business. For any business to function there must be a variety of job titles instilled. In the case of
M.I.S the job titles range depending on the job description. The main purpose of this project is to
investigate the wage rates by the different units of labour within the M.I.S Company.
Aims& Objectives
The aims of this research project are:

To explain the concept of wage differentials in relation to the labour force within the
company

To investigate the attributes that contributes to the wage differences of the employees of
M.I.S.
The objectives are:

To explain the concept of wage differentials

To identify the factors affecting the differences of wages at M.I.S

To compare and contrast actual findings from this study and those of other literatures.
Methodology
To critically obtain the data needed for this research project, primary and secondary
sources were used. The primary data was collected by administering questionnaires. The
questionnaires were administered to 20 individuals; these individuals were all the employees of
the company excluding on general worker. A selection from each job title was needed to
differentiate the wages adequately. The advantages of using questionnaires are; they were easy to
administer and it saved time as a large number of questionnaires could be administered at the
same time. The secondary method of collecting data included the use of textbooks and various
online sources. The benefit of this source is the provision of a variety of necessary information.
The data was analyzed using a quantitative approach by the presentation of charts. The charts
were then compared with literatures.
Limitations of Data Collection
The limitations of the use of questionnaires are, the respondent may lie, forget or lack
information and also the respondents left on their own may not be concerned about the
importance of the questions. For the secondary sources, the limitation was the extensive research
conducted because all the information was not easily forthcoming.
Research Design
The first step in executing this research project was the selection of an appropriate topic.
Next, was relating the topic to a named company and aims of the project were devised along with
several objectives. Having prepared, the introduction of the project, a methodology identifying
the sources used to gather information was established. Twenty questionnaires were the
formulated and administered to the employees of M.I.S Limited. Twenty employees answered
the questionnaires, each ranging from different sectors of the company. After the administration
of the questionnaires, the data was analysed and presented into tables and charts. In the analysis
the data from the table and charts was compared with literature relating to the topic. An
evaluation was then made from the analysed data and finally recommendations were made. In
the recommendations, points were made to correct any problems faced by the distribution of
wages in the company.
Presentation of Data
Job Title
Sex
Age Range
Years
at Qualifications
company(approximate)
Managing
Male
51-55
Over 20 years
Director
CXC
A-levels
Associate
Degree
Administrative
Female
51-55
11-20
Manager
CXC
A-levels
Associate
Degree
Sales Supervisor
Male
31-35
1-5
CXC
A-level
Production
Female
51-55
Over 20 years
CXC
Female
31-35
1-5
CXC
Female
41-45
1-5
CXC
Female
21-25
1-5
CXC
Supervisor
Production
Worker (1)
Production
Worker (2)
Production
Worker (3)
Production
Female
26-30
1-5
CXC
Female
21-25
1-5
CXC
Female
26-30
1-5
CXC
Female
46-50
1-5
CXC
Salesman (1)
Male
21-25
1-5
CXC
Salesman (2)
Female
26-30
6-10
CXC
Salesman (3)
Male
26-30
6-10
CXC
Salesman (4)
Male
31-35
6-10
CXC
Man Female
36-40
1-5
CXC
Man Male
26-30
1-5
CXC
Admin Female
36-40
6-10
CXC
Admin Female
41-45
6-10
CXC
41-45
6-10
None
Worker (4)
Production
Worker (5)
Production
Worker (6)
Production
Worker (7)
Delivery
(1)
Delivery
(2)
Office
(1)
Office
(2)
General Worker
Female
Table 1: General information of the employees of M.I.S
Occupational Level
Salary Range $/per year
Managing Director
100 000
Administrative Manager
75 000
Sales Supervisor
50 000
Salesman
25 000 – 30 000
Productive Supervisor
25 000
Productive Worker
20 000 – 24 000
Office Administration
24 000 – 25 000
Delivery Man
15 000
General Worker
12 000
Table 2: Occupation level and salary range of employees
Figure 1: Pie chart showing the male to female ratio within the company
Figure 2: Pie chart showing the number of employees who had previous experience before being
hired.
Yes
Managing Director
Administrative Director
Sales Supervisor
Production Supervisor
Production Worker (1)
Production Worker (6)
Salesman (1)
Salesman (4)
Salesman (2)
Office Admin (1)
Office Admin (2)
Delivery Man (1)
Delivery Man (2)
No
Productive worker (2)
Productive worker (3)
Productive worker (4)
Productive worker (5)
Productive worker (7)
Salesman (3)
General worker
Table 3: Showing which employees have experience
Figure 3: Column chart showing average wages and Age Range
Figure 4: Bar chart showing the period of training for the various job titles.
Figure 5: Bar chart showing occupational level with regard to average wage.
Analysis & Interpretation
Table 1 illustrates the general information of the employees of M.I.S. The table is in an
ascending order from the highest paid – the lowest paid. It is evident that the individuals who are
paid the highest have more distinct qualifications than other employees. For example, the
managing director, administrative manager and sales supervisor have more qualifications than
the other employees of the company, who only have CXC’s. From this, we can say that
qualifications differs the administration of the company with the majority of the employees.
However in term of years on the job, Lipsey & Chrystal (2004) states that generally, the longer
one stays with one firm, the higher the income one earns. This statement is true to extent in the
case of M.I.S products. The highest paid individuals have been with the company for
approximately 11- over 20 years and they have the higher incomes. The exception to this
statement is the sales supervisor who has only been with the company for 1-5 years and gets paid
more than various employees. This occurs because he has more qualifications than employees
who may have been working at the firm longer than he has.
Lipsey & Chrsytal (2004) indicates that incomes vary with the type of job. Cleaners and
casual staff in fast-food restaurants, for example, earn less than electricians and It support staff.
From the information shown in table 2, this example is portrayed. The Managing Director,
Administrative manager, Etc earn a higher income than the general workers, delivery men,
salesman mainly because the latter is seen as less significant as the higher paid jobs. Jobs such as
a general worker, which in this case would be a cleaner, would be categorized a low rated job
because no special skills are needed in executing the job. It would be impossible for lower rated
jobs to equal the same income of a high rate job mainly because of the experience needed and the
qualifications needed.
Many believe that a major factor of wage differentials is sex and gender. Figure 1 is a pie
chart showing the women to men ratio within the company. The company is made up of 70%
women and 30% men. Even though there are more men and women, the job titles are diverse in
term of gender. Lipsey & Chrystal (2004) states that on average, men earn more than women.
This statement does not technically apply to M.I.S mainly because the earnings is not based on
the gender but on job titles and some women have higher job titles than men. -sided”. This
statement can only apply to the fact the managing director and the highest paid individual is
male. However, most women within the company are paid higher than the males. This occurs
because; most of the women that make up the company are productive workers, whereas most
the males are sales and delivery men. The administration of the company has a variety of both
male and female
Figure 2 shows the number of employees who had experience before being hired for their
current job. Only 30 % of employees had previous experience. The 30% of employees varied
from higher paid – lower paid employees. It can be said that experience is the not a significant
factor in order to strive in this business. However, three of the highest paid employees had
experience before being hired which would help with efficiency in the business as well as the
functioning of the company. Table 3 shows which employees had experience and which did not.
Most employees within the company have had experience in their field of work. However, most
of the inexperienced workers are productive workers. The job descriptions of these workers do
not require much experience because this job mainly requires on the job training.
Figure 3 illustrates average earnings compared with the age range of employees.
According to Lypsy & Chrystal (2004), average earnings tend to rise until a person’s mid-40s
and fall thereafter (though this pattern varies with occupation).This statement is untrue pertaining
to the company being studied. Within M.I.S Products Ltd the average earnings fall between the
age of 46-50 but then rises between the age of 51- 55. This occurs because the highest paid
individuals are the Managing Director and the Administrative Manager who also happened to be
the oldest employees in the company. For instance, if these positions were occupied by younger
individuals the average earnings would rise within that age range.
Following, Figure 4 portrays the time period of training for the various jobs in the
company. From the bar chat, it can be concluded that the more significant the job the more
training it requires. For example, the managing director’s training period is 18 months whilst the
general worker does not have a training period at all. This occurs because the general manager’s
job is more important and more crucial that the general worker. Both jobs are vital for the
company in order to function but harder to execute. For instance, if the general worker makes a
mistake it would minor to company compared to if the managing director was to make a mistake
in executing his job. Any mistakes he makes could be vital to the efficiency of the company.
Finally, Figure 5 examines the occupational level in relation to the average wage. Figure
5 relates to table 2 which shows the range. However figure 5 portrays the average wage for each
job title. It is clear that income varies with the type of job. This relates to the theory by Lipsey &
Chrystal used to explain table 2.
Evaluation
Based on the definition of wage differentials and after analyzing the presented data from
the charts and table it can be said that evidence of wage gaps do exist within the organization.
The empirical literature highlighted many factors that cause wage differentials; however, in this
research, the predominant factors that were found M.I.S Products Limited were; the importance
of different job titles in comparison to others, the skills required and qualifications
Qualifications are not a major factor for wage differentials in this case but it did have
some kind of effect on how individuals are paid. In order to have conclusive idea if factors is a
major role a research across industries will have to be undertaken. Despite this limitation, based
on M.I.S Products Limited, the most qualified individuals are the highest paid, whereas the
individuals who are not qualified or have just basic qualifications are among the averaged paid
and the lowest paid. The administration or the management of the company also has had their job
titles in the companies for the longest. This means they also have years of experience as well as
qualifications. Also within the company, some individuals of with the same job description may
be paid higher. For instance, if some production workers get pay more than others who does the
same work, this may be due to having more CXCs (since all have CXCs) or the amount of yrs
working in the organization
Wage differentials may arise in this company because of the different skills required.
Every job title needs specific skills because of the variety of jobs needed. Jobs that require
special skills, greater responsibility or a long period of training are paid higher. This occurs
because of the demand of skill figured in contrast to the number of employees carrying out the
tasks.
Finally, all jobs within the company are deemed as important but some jobs are seen as
more significant than others. For example the managing director has to have to know the job
requirements of each job title as he oversees everything and had to make sure everything is
functioning right. Sometimes he may even have to step in for other workers if they are sick or is
not efficient enough. This may also be the case for the administrative manager as well. However,
most of the employees only have to worry about what their job title requires and executes their
tasks as adequately as possible. This is the most essential cause of wage the wage differences, the
importance of particular job descriptions.
Recommendations
In closing, from analyzing and evaluating the information that was gathered from this
study I would make the following recommendations to M.I.S Products Limited:

In terms of experience, employees who had previous experience before being hired
should have higher income than other in their sector that has only learnt about their
requirements from the training periods.

Office Administration workers should be able to get a promotion to higher paid jobs, if
they work efficiently and learn the different tasks and requirements needed to be part of
the administration

Efficient workers should be rewarded non-monetary incentives or end of year bonuses for
their hard work during the year

If the company is gaining substantial profits its possible they can invest in human capital
which would affect the efficiency of the company positively
Bibliography
Appendix
My name is ………….. and I am an Economics student at the St. Michael School. I am seeking
to gather information which would assist me in my Economics research assignment. The topic
of my assignment is Wage Differentials, which basically describes the factors that affect how
wages are distributed in a company. The information collected in this questionnaire will be
confidential. Please tick the box where necessary or fill out the questions. Please answer all
questions truthfully.
Gender: Male
[ ]
Female [ ]
Age: 21-25
[ ]
26-30
[ ]
31-35
[ ]
36-40
[ ]
41-45
[ ]
46-50
[ ]
51-55
[ ]
Over 55 [ ]
1. What is your job description within the company?
2. Does your job require a training period?
Yes [ ] No [ ]
3. If yes, how long was the period of training for this job?
2 months [ ]
4 months [ ]
6 month [ ]
1 year or more [ ]
4. Did you have any experience in the particular area before you were hired?
Yes [ ] No [ ]
5. What are your highest qualifications?
Cxc [ ] Associate Degree [ ] Diploma [ ] A-level [ ] Bachelor’s Degree [ ] Other [ ]
(If other please specify)
6. What skills are used in performing you job?
7. How long have you been working at the company?
Less than 1 year [ ]
1-5 years [ ]
6-10 years [ ]
11-20 years [ ]
8. State your approximate wage range? (Per annum)
12 000 [ ] 15000[ ]
30 000[ ] 50 000[ ] 100 0000 [ ]
9. How are you paid?
Weekly
[ ]
Ever two weeks [ ]
Monthly
[ ]
10. Are they a lot of competition for your current position?
Over 20 years [ ]
Yes [ ] No [ ]
11. For your job descriptions, are there limited positions available in the company?
Yes [ ] No [ ]
12. Are your wages comparable with workers in similar positions in competing businesses?
Yes [ ] No [ ]
14. Is there any risk associated with your job?
Yes [ ] No [ ]
15. Are there any extra allowances associated with the risk on the job?
Yes [ ] No [ ]
16. Are you rewarded any other non monetary incentives while working?
Yes [ ] No [ ]
17. Are you part of a trade union?
Yes [ ] No [ ]