An increasing unit labour cost would cause...

A fall in international competitiveness

In the diagram below, the wage being paid is...

W* because this is where labour demand and labour supply intersetc

A firm decides to switch a large percentage of its workforce with automated machines...

Demand for labour will become more wage inelastic

Which of the following is not a factor affecting the elasticity of supply for labour?

Labour cost as a proportion of total costs

A profit-maximising firm will employ labour up until the point where...

Marginal cost of labour = marginal revenue product

In a perfectly competitive labour market, a firm retrains its staff to increase efficiency.

The firm will hire more workers

A monopsonist labour market is one in which...

There is only one purchaser of labour

An individual's supply curve for labour eventually bends backwards because...

Income effect becomes stronger than the substitution effect

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Labour Markets

15 termsStudBud Administration50 plays

#economics #a-level #ocr #linear #labour #market

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Questions 15

Answers

1
An increasing unit labour cost would cause...
An increase in interest rates
A fall in net migration
A fall in international competitiveness
More businesses to invest in the UK
2
In the diagram below, the wage being paid is...
W* because this is where labour demand and labour supply intersetc
not below Wmin as this is the price floor
Wmin because a NMW has been imposed and is legally binding.
anywhere inbetween Wmin and W*
3
A firm decides to switch a large percentage of its workforce with automated machines...
Demand for labour will become more wage elastic
Supply of labour will become more wage inelastic
Supply of labour will become more wage elastic
Demand for labour will become more wage inelastic
4
Which firm is likely to have a more wage elastic demand curve for labour?
A capital-intensive oil production firm
A labour-intensive fruit farm
An online retailer
A capital-intensive car manufacture
5
The formula for marginal revenue product is...
MPP x Price
Demand x Price
MRP X Price
MPP x productivity
6
What is a possible reason why a NMW may NOT lead to excess labour supply, i.e. unemployment
there is a perfectly inelastic labour and supply
the imposed NMW is the same as the LD and LS intersection
all of the above
the NMW has shifted the LD curve out
7
The addition to total revenue from employing one additional worker is called...
Marginal physical product
Marginal benefit
Marginal revenue product
Marginal utility
8
Which of the following is not a factor affecting the elasticity of supply for labour?
Labour cost as a proportion of total costs
Availability of labour in other industries
The level of unemployment
Time period
9
The formula for unit labour cost is...
Total wages + salaries / MPP
Total cost of labour / output
Total cost of labour / MPP
Total wages + salaries / output
10
All shift the demand curve for labour except...
Increase in price of the product
Increase in productivity
Increase in demand for the product
Increase in barriers to entry
11
In a labour market, the demand curve for labour is given by...
Marginal cost
Total revenue product
Marginal revenue product
Marginal physical product
12
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
13
In a perfectly competitive labour market, a firm retrains its staff to increase efficiency.
The firm will leave the market
The wage rate will increase
The firm will hire more workers
The firm will make redundancies
14
A monopsonist labour market is one in which...
There is only one purchaser of labour
There is only one supplier of labour
There are many pecuniary benefits
The dominant firm has more than 25% of the market
15
An individual's supply curve for labour eventually bends backwards because...
Income effect becomes stronger than the substitution effect
Substitution effect becomes stronger than the income effect
Individuals have different preferences between work/leisure
Fiscal drag removes incentive to work more hours

Labour Markets Flashcards | StudBud