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WorksheetsThe labour market
Total questions: 23
Worksheet time: 23mins
What is a trade union?
a business organisation in which all workers share ownership
an area where there are no barriers to trade
an organisation of employers from an industry
an organisation that represents the interests of workers
What is an example of a non-wage factor?
bonus
commission
fringe benefits
overtime rates
What is a disadvantage of being a specialist skilled worker?
Career opportunities are abundant
Earnings are related to the level of skill
It may be difficult to find work locally.
Labour supply is elastic and plentiful.
What is most likely to increase the occupational mobility of labour?
building more houses
increased spending on re-training schemes
increased total government spending
increasing the information on job availability
Carlos has been offered a new job with a large multinational company. He is undecided whether to accept the position.
What is a non-wage factor he might consider?
A bonus payments
holiday entitlement
overtime rate
salary level
What is the most important factor that affects how much a family saves?
the income of the family
the level of taxation
the rate of inflation
the reliability of banks
Why does specialisation increase the productivity of employees?
Average cost of production increases
Staff turnover is high
Time is saved by not moving between tasks
Workers lose interest in their job
What could discourage women from seeking employment?
More education and training are provided
More flexible and part-time jobs are available.
There are fewer promotion opportunities for women.
There is a shift in employment to the services sector.
What will make it harder for a trade union to increase the wage rate for its members, without reducing employment?
a switch from short-term to long-term fixed contracts of employment
an increase in the number of substitutes for the product
growth in an economy and increased demand for labour
lower price elasticity of demand for the product
What could affect the size of the labour force in an economy?
the existence of a trade union
the government’s immigration policy
the quality of university graduates
the ratio of male to female employees
What might cause an increase in the earnings of a doctor in a government health service?
an increasing number of doctors graduate from university each year
an increasing number of people need health care
the government spends less on the nation’s health services
the population becomes more aware of healthy eating
What would put a trade union in a strong bargaining position to negotiate higher wages for its members in a particular firm?
The demand for the product produced by the workers has an inelastic demand.
The economy is experiencing high unemployment.
The proportion of the firm’s workers in the union is low
Wage costs are a high proportion of total costs for firms in the industry.
When is a trade union likely to have more power to increase its members’ wages?
When imports are increasing
when labour supply is increasing
when output is increasing
when unemployment is increasing
What will be likely to increase the wages of airline pilots?
Incomes increase in the world’s major economies
Terrorist attacks decrease tourist travel.
The cost of aviation fuel rises
The world economy goes into recession.
What is most likely to help a trade union’s claim for wage increases in an industry?
a decrease in the price of a close substitute for the product
a decrease in the qualifications needed for the job
an increase in the number of workers
an increase in the profits of the industry
What is the most likely reason a firm might welcome the introduction of a trade union for its workers?
Unions advise on the level of company dividends.
Unions simplify the process of wage bargaining.
Unions wish to operate labour-intensive production methods.
Unions press for higher minimum wage rates.
A television manufacturer claims to have the most technically advanced production in the industry.
What is this most likely to mean when compared with its rival producers?
It has a greater share of the television market.
It is a more diversified company
It is less likely to be disrupted by strike action.
It needs a more highly skilled workforce.
What is a direct benefit to a worker of specialisation?
the higher output that may lead to higher earnings
the higher output that may lead to higher profits
the higher output that may lead to lower costs per unit produced
the longer training period that is required before starting work
A job offers employees piecework, commission, paid holidays and a company pension. Which are non-wage factors?
commission and company pension
company pension and paid holidays
paid holidays and piecework
piecework and commission
When will a trade union be most likely to succeed in achieving the aims of its members?
when firms are trying to cut costs of production
when the rate of unemployment in the country is high
when trade union membership in the industry is compulsory
when workers are unskilled
Although there are higher paid jobs in offices many workers stay in low-paid jobs on farms. What might explain this in developing economies?
Agricultural workers lack the necessary education and skills
Governments plan to increase indirect taxes on services.
Manual workers are being replaced by machines.
Workers on farms have high labour mobility.
Which workers are most likely to gain the highest increase in wages from a pay rise of 2%?
airline pilots
farm workers
nurses
shop assistants
A female accountant in a private firm earns $80 per hour; a male Professor of Finance in a government university earns $40 per hour. Each works the same number of hours.
What could explain the difference in earnings?
It is difficult to measure the output per hour in each profession.
Pay in the private sector is profit-related but is not in the public sector
Qualifications of accountants are lower than those of Professors of Finance.
Women are generally given preference over men in professional jobs.
