IGCSE Economics-The Labour Market

IGCSE Economics

-The Labour Market

What jobs do you want to have?

Open Ended

What things influence what jobs you might be interested in taking?

The Labour Market

In a labour market there is demand for labour and supply of labour and a price of labour but they are not necessarily the same as what you would expect from a 'market'.

Who demands labour?

Who supplies labour?

What is the price of labour?

Multiple Choice

The demand for labour is a 'derived demand', meaning that ...

• the demand for labour is dependent on the supply of the inputs in the production process

• the demand for labour is completely independent of the demand for the product

• the demand for labour is dependent upon the demand for whatever the labour produces

• the demand for labour is greater than the demand for the product that the labour makes

Multiple Choice

Which of the following is likely to 'supply' workers?

• Firms

• Households

• Government

Multiple Choice

Which of the following is likely to 'demand' workers?

• Firms

• Households

• Government

Open Ended

What things will influence the demand for workers in the labour market?

Multiple Choice

Which of the following is the correct definition for derived demand?

• When the demand for one product depends on the demand for another product

• When products are in equal demand

• When there are too many consumers demanding a product

• When supply and demand are equal

Open Ended

What things are going to influence the supply of labour?

Multiple Choice

Which of the following is likely to increase the demand for labour?

• A slowing economy

• A fall in the demand for products across the UK

• A fall in wages

• A fall in a firm's profits

Draw

Illustrate a labour market show the effects of an increase in demand for labour

Multiple Choice

Which of the following is likely to increase the supply of labour?

• An increase in wages

• A fall in population

• An increase in benefit payments

• A fall in investment in education and training

Draw

Illustrate a labour market show the effects of an increase in the supply of labour

Multiple Choice

What is the price of labour?

• Value

• Wages

• Labour productivity

• Human capital

Multiple Choice

The demand for labour is a 'derived demand', meaning that ...

• the demand for labour is dependent on the supply of the inputs in the production process

• the demand for labour is completely independent of the demand for the product

• the demand for labour is dependent upon the demand for whatever the labour produces

• the demand for labour is greater than the demand for the product that the labour makes

Multiple Choice

The main reason why the supply curve for labour is upward sloping is because ...

• ... as the wage rate falls, an increasing number of people are prepared to work

• ... as the wage rate rises, an increasing number of people are prepared to work

• ... as the wage rate falls, an increasing number of people believe they can do the job

• ... as the wage rate rises, fewer people feel they can do the job

Multiple Choice

Which of the following will cause wage rates to rise in a labour market?

• an increase in the supply of labour

• an increase in the demand for labour

• an increase in supply and a fall in demand for labour

• a fall in the demand for labour

Multiple Choice

If the demand for McDonald's hamburgers rose, which of the following diagrams would display the likely impact on the demand for McDonald's workers

Non wage factors...

Fringe benefits-extra benefits that you are given in your job that are not part of your salary or wages e.g. health insurance...can you think of others?

Multiple Choice

What is an example of a non-wage factor?

• bonus

• commission

• fringe benefits

• overtime rates

Multiple Choice

Which statement about the supply of labour is the most accurate

• Trade unions only seek to raise the wages of their members

• The supply curve of labour of an economy can be affected by the migration policy of the country

• The supply of an individual unit of labour slopes upward continuously

• The supply of skilled is not greatly affected by barriers to entry into the market

Multiple Choice

What is most likely to increase the occupational mobility of labour?

• building more houses

• increased spending on re-training schemes

• increased total government spending

• increasing the information on job availability

Multiple Choice

What is a disadvantage of being a specialist skilled worker?

• Career opportunities are abundant

• Earnings are related to the level of skill

• It may be difficult to find work locally.

• Labour supply is elastic and plentiful.

Multiple Choice

All of the following are likely to increase the supply of labour EXCEPT:

• an increase in migration

• an increase in the retirement age

• an increase in the school leaving age

• an increase in the female working population

Multiple Choice

What is a disadvantage of being a specialist skilled worker?

• Career opportunities are abundant

• Earnings are related to the level of skill

• It may be difficult to find work locally.

• Labour supply is elastic and plentiful.

Multiple Choice

Several factors affect the demand for labour, including all of the following EXCEPT:

• The age distribution of the labour market

• Availability of substitutes

• Productivity of labour

• Other employment costs

Multiple Choice

What is most likely to increase the occupational mobility of labour?

• building more houses

• increased spending on re-training schemes

• increased total government spending

• increasing the information on job availability

Multiple Choice

In relatively low-skilled jobs, we are likely to see a labour supply curve such as which of the following:

Multiple Choice

The main reason why the supply curve for labour is upward sloping is because ...

• ... as the wage rate falls, an increasing number of people are prepared to work

• ... as the wage rate rises, an increasing number of people are prepared to work

• ... as the wage rate falls, an increasing number of people believe they can do the job

• ... as the wage rate rises, fewer people feel they can do the job

Multiple Choice

Aiden has been offered a new job with a large multinational company. He is undecided whether to accept the position.

What is a non-wage factor he might consider?

• A bonus payments

• holiday entitlement

• overtime rate

• salary level

Multiple Choice

What is the most important factor that affects how much a family saves?

• the income of the family

• the level of taxation

• the rate of inflation

• the reliability of banks

Multiple Choice

Why does specialisation increase the productivity of employees?

• Average cost of production increases

• Staff turnover is high

• Time is saved by not moving between tasks

• Workers lose interest in their job

Multiple Choice

All of the following are likely to increase the supply of labour EXCEPT:

• an increase in migration

• an increase in the retirement age

• an increase in the school leaving age

• an increase in the female working population

Multiple Choice

What could discourage women from seeking employment?

• More education and training are provided

• More flexible and part-time jobs are available.

• There are fewer promotion opportunities for women.

• There is a shift in employment to the services sector.

Multiple Choice

What could affect the size of the labour force in an economy?

• the existence of a trade union

• the government’s immigration policy

• the quality of university graduates

• the ratio of male to female employees

Multiple Choice

Which of the following will cause wage rates to rise in a labour market?

• an increase in the supply of labour

• an increase in the demand for labour

• an increase in supply and a fall in demand for labour

• a fall in the demand for labour

Multiple Choice

What will be likely to increase the wages of airline pilots?

• Incomes increase in the world’s major economies

• Terrorist attacks decrease tourist travel.

• The cost of aviation fuel rises

• The world economy goes into recession.

Multiple Choice

What is a direct benefit to a worker of specialisation?

• the higher output that may lead to higher earnings

• the higher output that may lead to higher profits

• the higher output that may lead to lower costs per unit produced

• the longer training period that is required before starting work

Multiple Choice

What might cause an increase in the earnings of a doctor in a government health service?

• an increasing number of doctors graduate from university each year

• an increasing number of people need health care

• the government spends less on the nation’s health services

• the population becomes more aware of healthy eating

Multiple Choice

A job offers employees piecework, commission, paid holidays and a company pension. Which are non-wage factors?

• commission and company pension

• company pension and paid holidays

• paid holidays and piecework

• piecework and commission

Multiple Choice

An accountant Elize in a private firm earns $80 per hour; a Professor of Finance Bill in a government university earns $40 per hour. Each works the same number of hours.

What could explain the difference in earnings?

• It is difficult to measure the output per hour in each profession.

• Pay in the private sector is profit-related but is not in the public sector

• Qualifications of accountants are lower than those of Professors of Finance.

• Women are generally given preference over men in professional jobs.

Open Ended

Review-A monopoly is a market structure where...

Open Ended

An oligopoly is a market structure where...

Multiple Choice

An oligopoly is a market structure in which many firms sell products that are similar but not identical

• TRUE

• FALSE

Multiple Choice

Which of the following is a non price strategy?

• Predatory Pricing

• Limit-pricing

• Promotion

• Collusion

Multiple Choice

Which of the following best describes an oligopistic market?

• Many sellers with identical barriers to entry

• Many sellers, each with a clearly differentiated product, and no barriers to entry

• A few competing sellers with similar products and high barriers to entry

• A few competing sellers of identical products and no barriers to entry

• No competition among sellers and high barriers to entry