Productivity of labour is defined as

output per worker per unit of time

The labour force includes

all people who are employed and unemployed at any given time

Which of the following IS an economic cost of inequality?

it creates conspicuous consumption

The unemployment rate (%) is given by the formula

number of persons unemployed ÷ total labour force × 100/1

Income distribution refers to the way in which:

an economy's income is spread among members of the community

Changes in econ activity do not always lead to immediate changes in the level of employment.Why

firms tend to operate with excess capacity

Which of the following would NOT be classed as an economic benefit of inequality?

It discourages the labour force from increasing their skills

Seasonal unemployment occurs because

some jobs occur only at a particular time of the year,

Workers may receive higher wages if their job

requires higher levels of education and training

A firm's demand for labour will be more elastic (respond more sharply to price changes) when

it is easy to substitute between labour and capital

In the short term, the overall effect of an increase in productivity on the demand for labour

will depend on the current level of aggregate demand.

Which of the following will affect the occupational mobility of labour?

The education and skills required.

In the short term, higher labour productivity means:

a fixed number of workers will be producing more g&s

Real wage is a measure of

the actual purchasing power of money wages.

Which of the following are not counted in the official unemployment figures?

hidden unemployment and underemployment

If wages growth is below the sum of inflation and productivity growth,

real labour costs will fall and profits will expand

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Year 11 Economics -Labour Markets

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Prelim. econ. Labour Markets

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Questions 30

Answers

1
Productivity of labour is defined as
output per factory per unit of time
unit of time per output per worker
output per worker per unit of time
unit of labour per output per unit of time
2
The labour force includes
people who are employed at any given time
all people who constitute the working-age population
people who are unemployed at any given time
all people who are employed and unemployed at any given time
3
Which of the following IS an economic cost of inequality?
It reduces the cost of welfare support
It reduces poverty and helps solve social problems
It increases consumption and investment
it creates conspicuous consumption
4
The situation where individuals want to work but are unable to find a job is termed
underemployment
the employment rate
unemployment
hidden unemployment
5
The demand for labour is a
derived demand
supplementary demand
union issue
constant demand
6
The unemployment rate (%) is given by the formula
number of persons employed ÷ total labour force × 100/1
Labour force ÷ population aged 15 or over × 100/1
number of persons unemployed ÷ total labour force × 100/1
No. of persons unemployed ÷ No. of persons employed × 100/1
7
Income distribution refers to the way in which:
a person decides to receive their wage or salary paid.
an economy's income is spread among members of the community
people spend their income
the marginal propensity to consume differs in the community
8
The interaction between workers seeking employment and employers who want to find workers is
the financial market
Centrelink
the labour market
the market economy
9
Being a derived demand, which of the following will affect the demand for labour?
A change in consumer tastes and preferences
Barriers to entry or level of regulation in an industry
Changing consumer demand for a product or service
all of the above
10
Changes in econ activity do not always lead to immediate changes in the level of employment.Why
it is easy and cheap to retrain a worker
firms tend to operate with excess capacity
there is no time lag
all of the above
11
Which of the following would NOT be classed as an economic benefit of inequality?
It discourages the labour force from increasing their skills
It makes the labour force more mobile
It encourages entrepreneurs to accept risk more readily
It encourages the labour force to work longer and harder
12
Seasonal unemployment occurs because
some people change jobs
some individuals are unsuitable for work
some jobs occur only at a particular time of the year,
some people want to work more hours.
13
When determining their demand for labour a firm will consider:
the relative cost of capital and labour
both of the above
the cost and productivity of foreign labour
none of the above
14
Which of the following IS NOT an 'on-cost' of employing labour?
superannuation
sick leave
workers' compensation
wages
15
A company car, subsidised childcare, bonuses and gym membership would be classed as
unfair benefits
wage outcomes
non-wage outcomes
enterprise bargaining
16
The total sum of the knowledge, skills, training and experience of workers are all elements of:
labour force
human capital
working conditions
participation rates
17
Workers may receive higher wages if their job
is not as dangerous as others
is in a business that is less profitable than others.
is located in the city where there is plenty of labour
requires higher levels of education and training
18
A firm's demand for labour will be more elastic (respond more sharply to price changes) when
all of the above
it is easy for the firm to ↑ prices to cover labour costs
labour costs are a relatively low proportion of total costs
it is easy to substitute between labour and capital
19
In the short term, the overall effect of an increase in productivity on the demand for labour
will depend on the current level of aggregate demand.
is that the demand for labour will decrease.
is that the demand for labour will remain unchanged.
is that more labour is demanded as it is a derived demand.
20
Which of the following traditionally face discrimination and fewer job opportunities?
women
all of the above
Aboriginal and Torres Strait Islanders
migrant groups
21
Which of the following will affect the occupational mobility of labour?
The cost of relocating, including travel and transportation.
The education and skills required.
All of the above
Social upheaval, including breaking ties with family.
22
In the short term, higher labour productivity means:
more workers are producing more g&s
less workers are producing less g&s
a fixed number of workers will be producing more g&s
a fixed number of workers will be producing less g&s
23
Unemployment caused by a downturn in the business cycle is termed
structural unemployment
long-term unemployment
hidden unemployment
cyclical unemployment
24
Real wage is a measure of
the pay received by employees in dollar terms.
the productivity of labour
the actual purchasing power of money wages.
benefits that employees receive in addition to their wage
25
Which of the following are not counted in the official unemployment figures?
hidden unemployment and structural unemployment
seasonal unemployment and frictional unemployment
hidden unemployment and underemployment
Underemployment and cyclical unemployment
26
Which of the following would NOT be likely to lead to an ↑ in the supply of labour for a firm?
below average wages
excellent training opportunities
a company car
flexible working hours
27
The working-age population is the number of people in an economy aged over
15
17
18
21
28
If wages growth is below the sum of inflation and productivity growth,
real labour costs will fall and profits will fall
real labour costs will fall and profits will expand
real labour costs will rise and profits will expand
real labour costs will rise and profits will fall
29
A mismatch of skills between those demanded by employers and those possessed by the unemployed
structural unemployment
cyclical unemployment
Hidden unemployment
long-term unemployment
30
If you want to see if people are better off over time you would look at
average weekly earnings
participation rates
nominal wages
real wages

Year 11 Economics -Labour Markets Flashcards | StudBud