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WorksheetsLABOUR MARKET
Total questions: 9
Worksheet time: 5mins
The demand for labour is said to be
Derived
in excess of supply
Infinite
Direct
MRP of labour is defined as
Marginal physical product is less MC of hiring one extra worker
The volume of output created by employing one extra unit of labour
marginal physical product times the price of the product produced
The price of the products produced less the MC of other factors of production
The elasticity of demand for labour is greatest when
Demand for the product produced is highly inelastic
Labour costs form a large proportion of total production costs
Labour costs form a small proportion of total production costs
It is difficult to substitute a type of labour with other labour or with capital
Which statement about the supply of labour is the most accurate
Trade unions only seek to raise the wages of their members
The supply curve of labour of an economy can be affected by the migration policy of the country
The supply of an individual unit of labour slopes upward continuously
The supply of skilled is not greatly affected by barriers to entry into the market
In the diagram , a competitive labour market will
pay a wage of W3 and employ Q2
pay a wage of W1 and employ Q1
pay a wage of W2 and employ Q2
All of the above
A monopsonist is
A single supplier to the market
A supplier of labour in a competitive market
A monopolist in the labour market
A single buyer in a market
In the diagram a profit maximising monopsonist will
pay a wage of W3 and employ Q2
pay a wage of W2 and employ Q2
Pay a wage of W1 and employ Q1
None of the above
Which area represents the transfer earnings available to a type of labour
pay a wage of W1 and employ E1
pay a wage of W2 and employ E2
pay a wage of W2 and employ E
pay a wage of W and employ E
The diagram shows a labour market for airline pilot. which of the following is most likely to have caused the changes shown
A reduction in prices of foreign holiday
An increase in the minimum wage
An increase in the prices of aircraft fuel
A relaxation in the qualifications required to be a pilot
