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WorksheetsLabour markets - perfect vs imperfect
Total questions: 10
Worksheet time: 5mins
Which of these is not an assumption of perfectly competitive labour markets?
There is perfect information
High barriers to entry or exit
Wage takers
Large number of buyers and sellers
In a perfectly competitive labour market, the supply of labour facing an individual firm is...
Perfectly elastic
Perfectly inelastic
A perfectly competitive firm’s level of employment (or demand for labour at each wage rate) would be where...
MRPL=AFC
MRPL=AVC
MRPL = W
MRPL=D
A fall in labour productivity would affect which curve?
Labour Supply
Labour Demand
In terms of the labour market, what does a Monopsony firm mean?
Only one seller
Only one buyer
Only one employee
Only one employer
In a monopsony market the AC curve is not the same as the MC curve. Why?
The MC incurred by employing an extra worker is the change in total amount by which the wage bill rises and not just the wage rate paid to the additional worker.
The MR received by the firm is greater than the MC of the additional worker.
The AC received by the firm is greater than the MC of the additional worker.
As with all profit maximising firms, the firm will seek to employ workers up to the point at which...
MRPL = MCL
MRPL = ACL
MRPL = SL
DL = SL
What determines the wage rate in a monopsonistic market?
MCL
ACL
MRPL
MPPL
In a perfectly competitive market, the wage rate will be higher or lower than in a monopsonistic market?
Higher
Lower
Which of these does not explain why there is a wage differential in labour markets?
Discrimination
Inactive workers
Imperfect information
Immobility of labour
