A Level Economics AQA Practice Exam 2025 - Free Economics Practice Questions and Study Guide

Wage discrimination is primarily based on factors such as gender, race, or age because it refers to the unequal treatment of individuals in the workplace regarding pay and benefits. This form of discrimination often arises when individuals are compensated differently for similar work based on characteristics that are unrelated to their job performance or productivity. For instance, women might be paid less than men for doing the same job, or employees of different racial backgrounds might see disparities in their wages regardless of their qualifications or experience. These discriminatory practices are legally and ethically problematic because they perpetuate inequality and hinder fair compensation based on merit.

In contrast, job performance typically reflects an individual's effectiveness and contribution to the organization, while location of employment can affect wages due to cost of living or market demand rather than discrimination. Length of service might influence pay in terms of seniority or loyalty bonuses, but it does not inherently involve discrimination based on personal characteristics. Wage discrimination specifically targets attributes that should not determine one’s pay, making the correct answer focused on gender, race, or age crucial in understanding this societal issue.