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LABOUR MARKET

Total questions: 9

Worksheet time: 5mins

Name
Class
Date
1.

The demand for labour is said to be

a)

Derived

b)

in excess of supply

c)

Infinite

d)

Direct

2.

MRP of labour is defined as

a)

Marginal physical product is less MC of hiring one extra worker

b)

The volume of output created by employing one extra unit of labour

c)

marginal physical product times the price of the product produced

d)

The price of the products produced less the MC of other factors of production

3.

The elasticity of demand for labour is greatest when

a)

Demand for the product produced is highly inelastic

b)

Labour costs form a large proportion of total production costs

c)

Labour costs form a small proportion of total production costs

d)

It is difficult to substitute a type of labour with other labour or with capital

4.

Which statement about the supply of labour is the most accurate

a)

Trade unions only seek to raise the wages of their members

b)

The supply curve of labour of an economy can be affected by the migration policy of the country

c)

The supply of an individual unit of labour slopes upward continuously

d)

The supply of skilled is not greatly affected by barriers to entry into the market

5.

In the diagram , a competitive labour market will

a)

pay a wage of W3 and employ Q2

b)

pay a wage of W1 and employ Q1

c)

pay a wage of W2 and employ Q2

d)

All of the above

6.

A monopsonist is

a)

A single supplier to the market

b)

A supplier of labour in a competitive market

c)

A monopolist in the labour market

d)

A single buyer in a market

7.

In the diagram a profit maximising monopsonist will

a)

pay a wage of W3 and employ Q2

b)

pay a wage of W2 and employ Q2

c)

Pay a wage of W1 and employ Q1

d)

None of the above

8.

Which area represents the transfer earnings available to a type of labour

a)

pay a wage of W1 and employ E1

b)

pay a wage of W2 and employ E2

c)

pay a wage of W2 and employ E

d)

pay a wage of W and employ E

9.

The diagram shows a labour market for airline pilot. which of the following is most likely to have caused the changes shown

a)

A reduction in prices of foreign holiday

b)

An increase in the minimum wage

c)

An increase in the prices of aircraft fuel

d)

A relaxation in the qualifications required to be a pilot