Labour Market Quiz

In a perfectly competitive labour market, firms are known as:

• Wage setters

• Wage makers

• Wage takers

• Price controllers

What determines the wage in a perfectly competitive labour market?

• Government policy

• Trade union power

• Supply and demand of labour

• Employer preferences

What does MRP stand for in labour economics?

• Marginal Revenue per Product

• Maximum Rate of Pay

• Marginal Revenue Product

• Market Rate Productivity

A firm will hire workers until:

• Total cost equals total revenue

• MRP equals wage rate

• Wage rate is zero

• There are no more workers available

Which of the following is NOT an assumption of a perfect labour market?

• Many buyers and sellers

• Perfect information

• Strong trade unions

• No barriers to entry

What is a monopsony?

• A firm that sells labour

• A market with many employers

• A single buyer of labour

• A government-regulated market

Monopsonies tend to:

• Raise wages to attract workers

• Hire more workers than perfect markets

• Pay lower wages and employ fewer workers

• Eliminate unemployment

Which organisation typically represents workers in wage negotiations?

• Monopolist

• Trade union

• Government agency

• Price regulator

Trade unions aim to:

• Lower wages to reduce unemployment

• Increase job competition

• Increase wages and improve conditions

• Promote monopsony power

Which of the following is an example of imperfect labour market intervention?

• Perfect wage equality

• Minimum wage laws

• Unregulated competition

• Labour self-selection