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Labour Markets Flashcards | StudBud
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Labour Markets
Labour Markets
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#economics #a-level #ocr #linear #labour #market
Flashcards
16 cards
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Questions
16
Answers
1
According to dual labour market theory, the secondary segment...
Is the more desirable sub market
Has high wages, good job security and working conditions
Is the same as the informal economy
Is more highly populated with women and migrants
2
The formula for unit labour cost is...
Total wages + salaries / output
Total cost of labour / MPP
Total wages + salaries / MPP
Total cost of labour / output
3
In a labour market, the demand curve for labour is given by...
Marginal revenue product
Marginal physical product
Total revenue product
Marginal cost
4
All shift the demand curve for labour except...
Increase in productivity
Increase in price of the product
Increase in barriers to entry
Increase in demand for the product
5
An increasing unit labour cost would cause...
An increase in interest rates
More businesses to invest in the UK
A fall in net migration
A fall in international competitiveness
6
The addition to total revenue from employing one additional worker is called...
Marginal revenue product
Marginal utility
Marginal physical product
Marginal benefit
7
An individual's supply curve for labour eventually bends backwards because...
Substitution effect becomes stronger than the income effect
Income effect becomes stronger than the substitution effect
Individuals have different preferences between work/leisure
Fiscal drag removes incentive to work more hours
8
A monopsonist labour market is one in which...
The dominant firm has more than 25% of the market
There is only one purchaser of labour
There is only one supplier of labour
There are many pecuniary benefits
9
Which firm is likely to have a more wage elastic demand curve for labour?
A capital-intensive car manufacture
An online retailer
A labour-intensive fruit farm
A capital-intensive oil production firm
10
A firm decides to switch a large percentage of its workforce with automated machines...
Supply of labour will become more wage inelastic
Supply of labour will become more wage elastic
Demand for labour will become more wage inelastic
Demand for labour will become more wage elastic
11
A profit-maximising firm will employ labour up until the point where...
Marginal cost of labour = zero
They cannot physically fit anyone else in the building
Marginal revenue product = zero
Marginal cost of labour = marginal revenue product
12
In a perfectly competitive labour market, a firm retrains its staff to increase efficiency.
The firm will hire more workers
The firm will make redundancies
The firm will leave the market
The wage rate will increase
13
The earnings required to keep a factor of production in its current use is called...
Sunk cost
Transfer earnings
Wages/salaries
Economics rent
14
The formula for marginal revenue product is...
MPP x productivity
MRP X Price
MPP x Price
Demand x Price
15
Which of the following is
not
a factor affecting the elasticity of supply for labour?
Availability of labour in other industries
Time period
The level of unemployment
Labour cost as a proportion of total costs
16
Occupations that require training and professional qualifications attract high economic rent
True
False
