Labour Markets Revision

In which occupations do wages tend to be lowest?

• in those where the work is dangerous

• in those where there is an excess supply of labour

• in those where workers are paid on a monthly basis

• in those where workers need long training

A group of workers in a firm joins a trade union.

What would the union be expected to do?

• arrange for labour-saving technology to be introduced

• discuss safety issues in the workplace with the employer

• ensure job security by promoting the firm’s products through advertising

• negotiate new contracts with major buyers of the firm’s products

As the demand for new houses increases, the demand for plumbers and electricians also increases.

What does this statement illustrate?

• The demand for plumbers and electricians is complementary (joint) demand.

• The productivity of plumbers and electricians increases continually.

• There is no limit to the number of plumbers and electricians employed.

• The supply of plumbers and electricians is totally elastic.

The world’s open-cast mining of mineral ores is dominated by a few multinational companies which employ relatively few workers.

What does this indicate?

• Production is capital-intensive.

• Productivity of labour is low.

• The market is perfectly competitive.

• There is a monopoly of world production.

When will a trade union be less likely to be able to achieve a rise in wages for its members?

• during a recession

• in an economic boom

• when productivity is rising

• where there is a limited supply of labour

Some agricultural co-operatives have changed from labour-intensive to capital-intensive methods of production.

What might be a cause of this change?

• Average productivity of agricultural workers has increased.

• Farming equipment has become more efficient.

• People are eating less food for health reasons.

• Some agricultural land has been sold for housing.

What could increase the ability of a trade union to gain a pay rise for its members in a coat factory?

• a decrease in the demand for coats

• a decrease in the number of people willing to work in the coat industry

• a decrease in the productivity of workers making coats

• a decrease in the sale of coat exports

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

When will a trade union be most likely to succeed in achieving the aims of its members?

• when firms are trying to cut costs of production

• when the rate of unemployment in the country is high

• when trade union membership in the industry is compulsory

• when workers are unskilled

When choosing an occupation people often consider things other than the wage-rate.

What would not be a good match for the type of work that is desired?

• detailed work; career structure

  lawyer

• outdoor lifestyle; regular hours

  farmer

• part-time hours; work with people

  supermarket assistant

• technical knowledge; responsibility

  telephone engineer