WHSS Economics: Wages & Labor

The table shows the change in real incomes for a number of occupations between 1985 and 2015. What can be concluded from the table?

A All occupations were better off in 2015 than in 1985.

B Fork-lift truck drivers earned the lowest wages in 2015.

C Doctors have earned more than lawyers since 1985.

D Professionals received higher percentage increases in income than manual workers.

• A

• B

• C

• D

The diagram shows the fixed costs, variable costs and total costs of a firm. Which distance represents the firm’s fixed costs? A WX B WY C XY D XZ

• A

• B

• C

• D

A large bakery buys a flour mill. Which form of integration is this?

A conglomerate

B horizontal

C vertical backwards

D vertical forwards

• A

• B

• C

• D

The retail store Woolworth’s has expanded the range of products it sells to include sweets, toys and compact discs. What term describes this change?

A diversification

B integration

C merger

D specialisation

• A

• B

• C

• D

In a company fixed costs are a high proportion of the total costs. What will result in the short run if production is cut by 50%?

A Average costs will rise.

B Fixed costs will fall.

C Total costs will remain constant.

D Variable costs will rise.

• A

• B

• C

• D

In a country, male workers on average earn more than female workers, although male and female workers receive equal pay for equal work. What could explain this?

A Female workers are more experienced.

B Female workers are more likely to achieve promotion.

C Male workers are more likely to be in trade unions.

D Male workers have fewer qualifications.

• A

• B

• C

• D

Which trade union action is most likely to have harmful effects on the productivity of a firm?

A acceptance of new technology

B agreement to a bonus system

C opposition to planned redundancies

D participation in a profit-sharing scheme

• A

• B

• C

• D

In 2001 some countries, including India and Pakistan, criticised the European Union for continuing to protect European farmers with a subsidy while expecting poorer African countries not to restrict trade. Identify the concepts that are not involved in this situation.

A developing and developed economies

B free trade and protection

C market prices and official intervention

D multi-nationals and public corporations

• A

• B

• C

• D

Which advantage is most likely to enable a small retailer to compete with larger stores?

A a convenient location

B a wide range of products

C internal economies of scale

D national advertising

• A

• B

• C

• D

Which is an external economy of scale?

A buying machines from other companies

B carrying out research with other companies

C lending money to other companies

D selling output to other companies

• A

• B

• C

• D