Labour Economics Quiz

Labour demand is derived from:

• The demand for goods and services

• The availability of resources

• Government intervention

• Population growth

A shift in the labour demand curve can be caused by:

• A change in wage rates

• A change in technology

• An increase in labour supply

• A change in union policies

Labour supply depends on:

• Wage rates alone

• Population size, skills, and working conditions

• Technology alone

• Capital availability

If wages increase, what happens to the quantity of labour supplied?

• It decreases

• It increases

• It remains constant

• It fluctuates randomly

What does an increase in labour supply usually result in?

• Higher wages

• Lower wages

• Greater job satisfaction

• Reduced productivity

Wage differentials arise due to:

• Differences in skills, education, and job risks

• Equal working conditions

• Government-imposed uniform wages

• Homogeneity of labour

Which of these is NOT a reason for wage differentials?

• Education levels

• Job risks

• Standardized productivity

• Geographical mobility

An example of a compensating wage differential is:

• Higher pay for night shifts

• Equal pay for similar jobs

• Government subsidies to workers

• Bonuses for exceeding targets

The main goal of a trade union is to:

• Increase profits for employers

• Protect workers’ rights and wages

• Reduce labour supply

• Increase taxes

A trade union can cause a shift in the labour supply curve by:

• Negotiating higher wages

• Promoting automation

• Reducing job opportunities

• Encouraging mergers