Section 3-2 (C18-19)

Front

What does the extent to which workers can specialise depend on? Options: division of labour, opportunity cost, taxation, the size of market

Back

the size of market

Answer explanation

A large market is likely to mean larger labour force. The greater the number of workers there are, the more they can specialise. A is the name for workers specialising. B is the definition for the best alternative forgone and C does not directly influence specialisation.

Front

Why might division of labour increase unit costs? Options: days lost due to sickness may be reduced, labour turnover may be higher, training time may be reduced, workers may concentrate on what they are best at

Back

labour turnover may be higher

Front

In which situation would the demand for labour be inelastic? Options: demand for the product produced is elastic, it is difficult to replace workers with machines, it takes a short time to train new workers, there is high unemployment in the economy

Back

it is difficult to replace workers with machines

Front

Which one of the following types of trade union represents engineers?
Options:
craft union,
general union,
industrial union,
white collar union

Back

craft union

Front

A trade union persuades an employer to raise the wage he pays his workers above the equilibrium level. What is most likely outcome? Options: More workers will be employed as it will be easier to recruit them, Some workers who retire or leave for other jobs will not be replaced, The firm will increase its output to raise the revenue needed to pay the higher wages, The firm will raise the wage rate higher to ensure demand equals supply

Back

Some workers who retire or leave for other jobs will not be replaced

Answer explanation

If the wage rate is pushed above the equilibrium level, the demand for labour will contract and employment will fall. Fewer workers will be employed. Firms will seek to lower and not raise the wage rate. Increasing the output may or may not raise revenue. It will depend on price elasticity of demand. Even if it does raise revenue, it will also increase costs as not only will they have to pay existing workers more, they may also have to hire more workers.

Front

Which characteristic would strengthen the power of a trade union? Options: Demand for the product produced by the workers is elastic, It is difficult to substitute the workers by machines, Its members are unwilling to take industrial action, The wages form a high proportion of the industry's total cost

Back

It is difficult to substitute the workers by machines

Front

When is labour market in equilibrium?

Back

When the number of hours of work demanded is equal to the number of hours supplied

Front

What could cause an extension in the supply of farm workers' labour? Options: a decrease in the number of hours farm workers have to work, a decrease in the dangers included in farm work, an increase in the wage rate paid to farm workers, an increase in the non-wage benefits received by farm workers

Back

an increase in the wage rate paid to farm workers

Front

Which change in the nature of a job would be most likely to increase the number of people willing to do it? Options: a decrease in job satisfaction, a decrease in holiday entitlement, an increase in job insecurity, an increase in on-the job training

Back

an increase in on-the job training

Front

Which group of workers is likely to spend and save the most? Options: cleaners, doctors, factory workers, railway porters

Back

doctors