Labour Market Quiz

What is the labour market?

• The interaction between individuals seeking employment to gain an income, and employers who want to find workers with the appropriate skills for the production process.

• A place where goods and services are exchanged.

• A system where only employers interact with each other.

• A market where only goods are sold.

In economics, how is "the labour market" typically referred to?

• As multiple markets

• As one single market

• As a dual market

• As a segmented market

What happens to the employment of labour when the price of labour (wages) falls?

• Firms employ less labour

• Firms employ more labour

• Firms keep the same amount of labour

• Firms stop employing labour

What does the productivity of labour influence in a firm?

• The demand for labour

• The color of the office

• The number of holidays

• The type of furniture used

Which factor is NOT mentioned as determining the demand for labour?

• The cost of the other inputs

• The productivity of labour

• The output of the firm

• The weather conditions

What is the result of increasing sales according to the diagram?

• Decrease in production

• Increase in demand for labor

• Decrease in demand for labor

• Decrease in sales

What is the total demand for goods and services within the economy called?

• Aggregate supply

• Aggregate demand

• Gross domestic product

• Net exports

What does the 'C' in the components of aggregate demand stand for?

• Consumption

• Capital

• Currency

• Cost

In the components of aggregate demand, what does 'X-M' represent?

• Net imports

• Net exports

• Gross exports

• Gross imports

What is a likely effect on firms when there is strong growth in the economy?

• Firms will experience decreasing sales and need fewer employees.

• Firms will experience increasing sales and possibly need more employees.

• Firms will experience no change in sales and employee needs.

• Firms will experience increasing sales but need fewer employees.