Which is NOT structural adjustment?

An increase in output as economic activity increases

When will a firm's demand for labour be least elastic?

When it is easy for a firm to pass on increased labour costs

What is labour productivity?

Output produced per worker over a given time

Which of the following occurs if real income decreases?

Money wages rise more slowly than inflation

Which of the following will add to cyclical unemployment?

There is a downturn in economic activity

Assuming capital levels must remain fixed, what will an increase in productivity do?

Increase demand for labour (if agg dd increases too)

Which of the following describes why the number of hidden unemployed might decrease?

More part-timers become full-timers

Which of the following is most likely to increase labour productivity?

A compulsory TAFE course for all employees at a firm

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Labour Demand and Supply

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Preliminary Economics: Labour

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Questions 10

Answers

1
Which is NOT structural adjustment?
Decline in the wool industry due to lower subsidies
Decline of the industry producing videos due to a fall in dd
An increase in output as economic activity increases
Replacement of a bank teller with an ATM
2
What is the effect of increased number of discouraged job seekers who give up looking for work?
Increase in participation rate
Decrease in participation rate
Increase in labour force
Increase in unemployment rate
3
When will a firm's demand for labour be least elastic?
When it is easy to substitute between labour and capital
When labour costs are a high proportion of total costs
When the firm is in a market where perfect competition
When it is easy for a firm to pass on increased labour costs
4
What is labour productivity?
The products which can be produced without capital
The opp cost of using labour not capital
Output produced over a given time
Output produced per worker over a given time
5
Which of the following occurs if real income decreases?
Money wages rise more quickly than inflation
The purchasing power of money increases
The level of unemployment decreases
Money wages rise more slowly than inflation
6
Which of the following will add to cyclical unemployment?
Manufacturing workers are replaced by robots
Ski instructors are not offered work in summer
There is a downturn in economic activity
Employer refuses to hire someone who has a criminal record
7
Assuming capital levels must remain fixed, what will an increase in productivity do?
Decrease demand for labour
Increase demand for labour
Increase demand for labour (if agg dd increases too)
Decrease demand for labour (if agg dd increases too)
8
Which of the following describes why the number of hidden unemployed might decrease?
Population increases
More part-timers become full-timers
The level of economic activity increases
Increased rate of structuraL change
9
Improvements in economic conditions may not reduce unemployment due to which of the following?
An increase in capital investment
Time lags
All of the above
Rising labour productivity
10
Which of the following is most likely to increase labour productivity?
A deterioation in working conditions
Failure to invest in the most up-to-date capital equipment
A compulsory TAFE course for all employees at a firm
A fall in wages

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