WAEC 2024 Economics · Question 49

The supply of labour to an occupation will tend to rise when

Options

  1. A.there are less monetary benefits.
  2. B.holiday entitlement is cut.
  3. C.welfare packages improve.
  4. D.unemployment benefit rises.

Answer: C. welfare packages improve.

Explanation written with AI and checked against the answer key

Step 1: Analyze the question The question asks what makes more people willing to work in a particular occupation. This is about the factors affecting the supply of labour to an occupation.

Step 2: The concept The supply of labour to an occupation depends largely on how attractive the job is. Workers compare both:

  • Monetary benefits: wages, salaries, bonuses
  • Non-monetary benefits: welfare packages, holidays, housing, health care, job security, working conditions

When an occupation becomes more attractive, more people want to join it, so the supply of labour rises. When it becomes less attractive, supply falls.

Step 3: Check each option

  • A. Less monetary benefits: Lower pay makes the job less attractive, so labour supply falls. ✘
  • B. Holiday entitlement is cut: Fewer holidays is a worse condition of service, so labour supply falls. ✘
  • C. Welfare packages improve: Better health care, pension, housing and similar allowances make the job more attractive, so labour supply rises. ✔
  • D. Unemployment benefit rises: Higher unemployment benefit makes staying jobless more comfortable, so it tends to reduce the incentive to take jobs. This does not raise labour supply to an occupation. ✘

Step 4: Answer The correct option is C.

Tip: For "supply of labour to an occupation" questions, ask yourself, "Does this make the job more attractive or less attractive?" Better pay, better conditions and better fringe benefits increase supply. Anything that worsens the job decreases supply.

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