Labor Markets IGCSE Economics

1. Which of the following will cause a decrease in demand for labour?

• A Decrease in the number of school leavers
• B Decrease in demand for goods and services because of a downturn in the economy
• C Increase in number of women joining the workforce
• D Increase in productivity of workers

2. Women, in general, earn less than men. Which of the following is a possible reason for this?

• A More women are enrolled on medicine and law courses
• B More women are focused on their careers and delaying having children
• C A larger number of women work part-time or work flexible working hours
• D There is a greater female participation rate in the workforce

3 Following an increase in the national minimum wage (NMW), which of the following is most likely to reduce government expenditure on welfare payments?

• A Unemployed workers have a greater incentive to work
• B Increased consumer spending in the economy
• C Greater productivity of public sector workers
• D Increased tax revenues from higher income taxes

4 The UK government provides people who wish to train to be teachers of mathematics and physics with a bursary (a sum of money which does not have to be repaid). Identify which of the following may increase the supply of labour in an economy. Tick as many that apply.

• Increasing the minimum wage
• Education and training of workers
• Lowering welfare benefits
• Reducing the retirement age
• Providing childcare facilities for low-income families

5 A disadvantage of specialisation of labour for a firm is

• A Workers become skilled in the job and more productive
• B The production process may become dependent upon a particular worker
• C Workers make less mistakes
• D The quality of the products increases

6. Labour is demanded for the goods and services it produces. This is know as:

• Supply of labour
• Derived demand
• Labour market

7. Covid-19 has caused some businesses to consider replacing workers with machinery. Will this impact demand for or supply of labour?

• Demand for labour
• Supply of labour

8. Who will NOT be included in the working population?

• Police officer
• Managing director of a business
• University student
• Bus driver

Immigrants from Syria and the Ukraine to Germany will impact the

• Demand for labour in Germany

• Supply of labour in Germant

Which of the following impacts the supply of labour in an economy?

• Replacement of workers with machines

• Decrease in demand for goods and service because the economy is in a recession

• Increased occupational and geographical mobility of labour

• Increase in productivity of labour