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Analyse the government and market forces that create differences in income.
Government and government regulations such as enterprise bargaining combined with the interaction of the market forces of demand and supply contributes to create differences in income in a labour market. Therefore this determined the price of labour or the wage levels and the quantity of labour or employment levels. Also factors affecting supply and demand influence the income difference.
The occurrence of differences in income in a labour market is due to the interaction between individuals who are willing to supply their labour to earn an income and employers who are on a demand to obt…
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