A Level Economics AQA Practice Exam

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What outcome do people face as a result of wage discrimination?

  1. Higher job satisfaction

  2. Increased unemployment rates

  3. Lower wages based on personal characteristics

  4. Enhanced legal protections

The correct answer is: Lower wages based on personal characteristics

Wage discrimination leads to individuals receiving lower wages based on personal characteristics such as gender, race, age, or other factors unrelated to their actual work performance or qualifications. This unequal treatment in pay can create a disparity in income where certain groups may earn significantly less than others who are doing similar work. Consequently, it perpetuates social inequality and can have long-term economic impacts on both individuals and society as a whole. This phenomenon does not directly lead to higher job satisfaction, as feeling undervalued can impact morale and motivation. The relationship between wage discrimination and unemployment rates is not straightforward, as discrimination can both hinder and promote employment for some groups. Legal protections typically seek to combat wage discrimination rather than enhance it, meaning that enhanced legal protections would be an inappropriate outcome of the situation. Thus, the most accurate outcome linked directly to wage discrimination is the experience of lower wages based on personal characteristics.

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