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O-LevelEconomicsMicroeconomic decision makers2281/13 · Oct/Nov 2024 · Q131 Mark

Employers based in large cities often pay employees special allowances above standard pay rates. What is the most likely reason for this?

AJob security and promotion prospects tend to be restricted.
BLiving costs and transport costs tend to be high.
CThere are few alternative job opportunities available.
DTrade unions negotiate nationwide wage levels.

✓ Correct answer

B: Living costs and transport costs tend to be high.

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About this question

Topic
Microeconomic decision makers, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, Oct/Nov 2024 Paper 1 Variant 3, question 13.

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