Supply of Labour Quiz

Which of the following is a factor that can cause a contraction in the supply of labour?

• Increase in wage rate

• Decrease in trade union power

• Increase in minimum wage

• Increase in worker incentives

What is the effect of a decrease in the National Minimum Wage on labour supply?

• Expansion of supply

• Contraction of supply

• No change in supply

• Increase in demand

What is the result of a fall in wage or bonuses on labour supply?

• Increase in supply

• Contraction of supply

• No effect on supply

• Increase in demand

Which of the following causes a decrease in labour supply?

• Decrease in income tax

• Increase in income tax

• Increase in migration

• Decrease in qualifications needed

How does an increase in qualifications needed for an occupation affect labour supply?

• Increases supply

• Decreases supply

• No effect

• Triples supply

What is the effect of higher unemployment benefits on job finding incentives?

• Increases incentive

• Decreases incentive

• No effect

• Doubles incentive

What happens to the labour market when more workers retire than are replaced by young workers?

• Increase in supply

• Decrease in supply

• No change

• Increase in demand

How does a decline in the working population affect the labour market?

• Increases supply

• Decreases supply

• No effect

• Increases demand

Which factor makes the supply of labour more inelastic?

• Short training periods

• High geographic mobility

• Long and expensive training/education

• Low occupational mobility

What does occupational immobility refer to?

• The inability to move geographically

• The inability to switch professions

• The inability to find employment

• The inability to increase wages