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iGCSE ECON - The Labour Market

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The demand for labour is a 'derived demand', meaning that ...

a)

the demand for labour is dependent on the supply of the inputs in the production process

b)

the demand for labour is completely independent of the demand for the product

c)

the demand for labour is dependent upon the demand for whatever the labour produces

d)

the demand for labour is greater than the demand for the product that the labour makes

2.

If the demand for McDonald's hamburgers rose, which of the following diagrams would display the likely impact on the demand for McDonald's workers

a)
b)
c)
d)
3.

Several factors affect the demand for labour, including all of the following EXCEPT:

a)

The age distribution of the labour market

b)

Availability of substitutes

c)

Productivity of labour

d)

Other employment costs

4.

In relatively low-skilled jobs, we are likely to see a labour supply curve such as which of the following:

a)
b)
c)
d)
5.

The main reason why the supply curve for labour is upward sloping is because ...

a)

... as the wage rate falls, an increasing number of people are prepared to work

b)

... as the wage rate rises, an increasing number of people are prepared to work

c)

... as the wage rate falls, an increasing number of people believe they can do the job

d)

... as the wage rate rises, fewer people feel they can do the job

6.

When dealing with employment, the dependency ratio can be defined as ...

a)

number of dependents / working population

b)

working population / number of dependents over the age of 65

c)

entire population / working population

d)

working population / unemployed population

7.

All of the following are likely to increase the supply of labour EXCEPT:

a)

an increase in migration

b)

an increase in the retirement age

c)

an increase in the school leaving age

d)

an increase in the female working population

8.

The main aims of trade unions are to do all of the following EXCEPT:

a)

negotiate pay and working conditions for its members

b)

provide legal protection for its members

c)

pressure government to pass legislation

d)

provide regular pay cheques and bonuses to its members

9.

Throughout the world, in many countries the power of trade unions has been reduced by government laws such as ...

a)

not allowing businesses to ever sue striking workers

b)

increasing the ability of workers to engage in "secondary picketing"

c)

making 'closed shops' illegal

d)

allowing businesses to strike so long as a quarter of their members agreed

10.

Which of the following will cause wage rates to rise in a labour market?

a)

an increase in the supply of labour

b)

an increase in the demand for labour

c)

an increase in supply and a fall in demand for labour

d)

a fall in the demand for labour