Question 1

Sometimes employees form organizations to represent and protect them called trade ______.

Accepted Answer

Unions

Question 2

An increase in the wage rate may be caused by:

Accepted Answer

A)  An outward shift of the supply of labour 
B)  An inward shift of the demand of labour 
C)  An outward shift of the demand of labour 
D)  An increase in the number of employees wanting to work in this industry 
A)  An outward shift of the supply of labour 
B)  An inward shift of the demand of labour 
C)  An outward shift of the demand of labour 
D)  An increase in the number of employees wanting to work in this industry C

Question 3

An increase in the wage rate may increase the total earnings of employees if the demand for employees is wage inelastic.

Accepted Answer

A) True 
 B)False  True

Question 4

Demand for labour is likely to be more wage inelastic if:

Accepted Answer

A)  Labour is a large proportion of total costs. 
B)  Firms are labour intensive. 
C)  It is difficult to replace labour with machines. 
D)  Demand for the product is price elastic. 
A)  Labour is a large proportion of total costs. 
B)  Firms are labour intensive. 
C)  It is difficult to replace labour with machines. 
D)  Demand for the product is price elastic.

Question 5

Labour is a ___________ of production.

Accepted Answer

A)  Force 
B)  Focus 
C)  Filament 
D)  Factor 
A)  Force 
B)  Focus 
C)  Filament 
D)  Factor

Question 6

A reduction in benefits will:

Accepted Answer

A)  Increase the incentive to work and shift the labour supply curve to the right. 
B)  Increase the incentive to work and shift the labour supply curve to the left. 
C)  Decrease the incentive to work and shift the labour supply curve to the left. 
D)  Decrease the incentive to work and shift the labour supply curve to the right. 
A)  Increase the incentive to work and shift the labour supply curve to the right. 
B)  Increase the incentive to work and shift the labour supply curve to the left. 
C)  Decrease the incentive to work and shift the labour supply curve to the left. 
D)  Decrease the incentive to work and shift the labour supply curve to the right.

Question 7

A fall in the wage rate:

Accepted Answer

A)  Shifts the demand for labour. 
B)  Shifts the supply of labour inwards. 
C)  Leads to a movement along the demand for labour curve. 
D)  Shifts the supply of labour outwards. 
A)  Shifts the demand for labour. 
B)  Shifts the supply of labour inwards. 
C)  Leads to a movement along the demand for labour curve. 
D)  Shifts the supply of labour outwards.

Question 8

As the training period to qualify for a particular job increases:

Accepted Answer

A)  The labour supply curve will shift to the right. 
B)  There will be a movement upwards along the labour supply curve. 
C)  The labour supply curve will shift to the left. 
D)  There will be a movement downwards along the supply curve. 
A)  The labour supply curve will shift to the right. 
B)  There will be a movement upwards along the labour supply curve. 
C)  The labour supply curve will shift to the left. 
D)  There will be a movement downwards along the supply curve.

Question 9

An increase in the demand for labour is likely to lead to:

Accepted Answer

A)  A higher wage rate and a lower quantity employed 
B)  A lower wage rate and a higher quantity employed 
C)  A higher wage rate and a higher quantity employed 
D)  A lower wage rate and a lower quantity employed 
A)  A higher wage rate and a lower quantity employed 
B)  A lower wage rate and a higher quantity employed 
C)  A higher wage rate and a higher quantity employed 
D)  A lower wage rate and a lower quantity employed

Question 10

An increase in the supply of labour in an industry is likely to lead to a lower wage and a higher number of people employed.

Accepted Answer

A) True 
 B)False

Question 11

An increase in the wage rate will lead to:

Accepted Answer

A)  An inward shift of the demand for labour 
B)  An outward shift in the supply of labour 
C)  A movement along the demand for labour 
D)  A decrease in demand for the product 
A)  An inward shift of the demand for labour 
B)  An outward shift in the supply of labour 
C)  A movement along the demand for labour 
D)  A decrease in demand for the product

Question 12

The demand for labour is dependent on the demand for the final product. This means it is a _________ demand.

Accepted Answer

A)  Deranged 
B)  Discovered 
C)  Dependent 
D)  Derived 
A)  Deranged 
B)  Discovered 
C)  Dependent 
D)  Derived

Question 13

Which of the following would cause a movement along the labour supply curve?

Accepted Answer

A)  A change in the value of benefits paid 
B)  A change in the period of training required 
C)  A change in the wage rate 
D)  A change in the overall appeal of the job 
A)  A change in the value of benefits paid 
B)  A change in the period of training required 
C)  A change in the wage rate 
D)  A change in the overall appeal of the job

Question 14

In the labour market, equilibrium is achieved by adjustment in the:

Accepted Answer

A)  price level 
B)  wage rate 
C)  tax rate 
D)  exchange rate 
A)  price level 
B)  wage rate 
C)  tax rate 
D)  exchange rate

Exam 16: The Labour Market

Sometimes employees form organizations to represent and protect them called trade ______.

An increase in the wage rate may be caused by:

An increase in the wage rate may increase the total earnings of employees if the demand for employees is wage inelastic.

Demand for labour is likely to be more wage inelastic if:

Labour is a ___________ of production.

A reduction in benefits will:

A fall in the wage rate:

As the training period to qualify for a particular job increases:

An increase in the demand for labour is likely to lead to:

An increase in the supply of labour in an industry is likely to lead to a lower wage and a higher number of people employed.

An increase in the wage rate will lead to:

The demand for labour is dependent on the demand for the final product. This means it is a _________ demand.

Which of the following would cause a movement along the labour supply curve?

In the labour market, equilibrium is achieved by adjustment in the:

What Is Economics

The Production Possibility Frontier PPF

Demand

Behavioural Economics

The Elasticity of Demand

Supply

Market Equilibrium

The Free Market System

Intervening in the Market System

Costs: Short Run and Long Run

Revenues, Costs, and Profits

Perfect Competition

Monopoly

Oligopoly

Monopolistic Competition and Non-Price Competition

Introduction to Macroeconomics

Equilibrium in the Economy

National Income and the Standard of Living

Demand Side and Supply Side Policies

Influences on Aggregate Demand: Consumption

Influences on Aggregate Demand: Investment

Influences on Aggregate Demand: Government Revenues and Taxation

Influences on Aggregate Demand: International Trade, Globalization, and Exchange Rates

Government Objectives: Economic Growth and the Economic Cycle

Unemployment

Money

Government Objectives: Managing Inflation

Government Objectives: Achieving a Favourable Trade Position

Filters