A Level Economics (9708)•9708/11/O/N/22

Explanation
Minimum Wage's Impact on Low Pay Trends
Steps:
- Examine trends in low pay and extremely low pay percentages from 1976 to 2012, noting the 1999 minimum wage introduction.
- Identify changes before and after 1999 for both categories to assess policy effects.
- Compare reduction sizes across periods to find the largest drop in low pay.
- Evaluate each option against observed trends for consistency.
Why C is correct:
- Post-1999 data shows the steepest decline in low pay percentages, directly aligning with the minimum wage's implementation as the key intervention.
Why the others are wrong:
- A: Extremely low pay may have seen comparable or greater relative benefits, not less.
- B: Trends did not reverse (e.g., no upward trajectory pre-1999 to downward post); they continued declining variably.
- D: Extremely low pay trends were inconsistent or unaffected post-1999, not uniformly reduced.
Final answer: C
Topic: Labour market forces and government intervention
Practice more A Level Economics (9708) questions on mMCQ.me