Demand for and Supply of Labour
84 questions· page 1 of 9
How is marginal revenue product calculated?
Options
A marginal physical product × marginal revenue
B marginal physical product ÷ price
C total physical product × marginal cost
D total physical product ÷ marginal cost
What is not a factor affecting the supply of labour?
Options
A emigration rates
B labour participation rate
C labour productivity
D unemployment benefits
There has been an increase in labour productivity.
Which combination of effects is most likely?
Options
| shift of demand curve for labour | shift of supply curve for labour | effect on wage rate | |
|---|---|---|---|
| A | none | inward | increase |
| B | none | outward | decrease |
| C | inward | none | increase |
| D | outward | none | increase |
There is a decrease in the supply of female labour.
What will the likely effect on male and female wages be?
Options
| male wages | female wages | |
|---|---|---|
| A | decrease | decrease |
| B | decrease | increase |
| C | increase | decrease |
| D | increase | increase |
An increase in which variable would shift the supply curve for farm workers to the right?
Options
A job security
B the hourly wage rate
C the productivity of farm workers
D the qualifications required
What would shift the marginal revenue product curve for workers producing electric vehicles to the right?
Options
A a decrease in the price of petrol vehicles
B a decrease in the productivity of electric vehicles workers
C an increase in the price of electric vehicles
D an increase in the wage rate of electric vehicles workers
The diagram shows a perfectly competitive firm's average product of labour (APL) and marginal product of labour (MPL) curves.
How many workers will the firm employ at a wage of W?
Options
A ON1
B ON2
C ON3
D ON4
What will cause an outward shift in the demand for labour curve?
Options
A a decrease in the top rate of income tax
B an increase in the demand for the final product
C an increase in subsidies to firms
D an increase in the size of the working population
Most workers in a country are employed in the manufacturing sector where they are paid a fixed wage rate per hour.
What will lead to an increase in the net advantage of workers currently employed in the manufacturing sector?
Options
A a reduction in working hours available
B a shift in the country’s economy to the service sector
C a subsidised lunch is made available
D an increase in the number of jobs available
When will a profit-maximising firm employ the optimum number of workers?
Options
A when the average revenue product of labour equals the average cost of hiring workers
B when the marginal revenue product of labour equals the average cost of hiring workers
C when the marginal revenue product of labour equals the marginal cost of hiring workers
D when the marginal revenue product of labour equals the trade union supplied cost of workers