A company maintains offshore wind turbines. Most technician shifts are overnight and offshore. The company is choosing between an immediate wage increase and funding a training scheme. Demand for turbine maintenance is expected to increase as more service contracts are agreed.
| Labour-market information | Value |
|---|---|
| Current hourly wage | £20 |
| Typical hourly wage in alternative onshore technician jobs | £23 |
| Qualified technicians currently employed | 84 |
| Technicians required now | 120 |
| Technicians expected to be required in 18 months | 138 |
| Policy | Expected effect | Additional cost |
|---|---|---|
| Increase the hourly wage to £24 | Qualified workforce rises to 110 within three months | £858,000 each year |
| Fund a qualification programme | 40 additional qualified technicians after 18 months | £600,000 once |
Evaluate which policy the company should use to reduce its shortage of qualified technicians.
80 exam-style questions on OCR GCSE Economics 2.7 The labour market, covering 2.7.1 Role and operation of the labour market, 2.7.2 Determination of wages, 2.7.3 Explain gross and net pay, and 2.7.4 Calculate gross and net pay. Each one has a worked solution and a mark scheme showing where the marks go.