A. Will usually lead to more people employed
B. Will decrease total earning if the demand for labour is wage elastic
C. is illegal in a free market
D. will cause a shift in the demand for labour
Labour Market
A fall in demand for labour is likely to lead to ?
A. A lower equilibrium wage and lower quantity of labour
B. A lower equilibrium wage and higher quantity of labour
C. A higher equilibrium wage and higher quantity of labour
D. A higher equilibrium wage and lower quantity of labour
The Marginal Revenue Product is ?
A. Upward sloping due to the law of demand
B. Upward sloping due to the law of marginal utility
C. Downward sloping due to the law of diminishing returns
D. Downward sloping due to the law of supply
A profit maximising firm will employ labour up to the point where ?
A. Marginal revenue = marginal product
B. Marginal cost = marginal product
C. Marginal revenue product = average cost of labour
D. Marginal revenue product = marginal cost of labour
If employees cannot accept a job because of the costs of moving this is known as ?
A. Occupational immobility
B. Cyclical unemployment
C. Structural immobility
D. Geographical immobility
If people are made unemployed because of a fall in aggregate demand this is known as ?
A. Frictional unemployment
B. Seasonal unemployment
C. Cyclical unemployment
D. Structural unemployment
The natural rate of unemployment is likely to fall if ?
A. unemployment benefits increase
B. Income tax increases
C. More training is available for the unemployed
D. Geographical immobility increases
If there is cyclical unemployment in the economy the government might ?
A. Increase interest rates
B. Encourage savings
C. Cut taxes
D. Reduce government spending
Which of the following is not a supply side measure ?
A. Increased training
B. Providing more information
C. Helping individuals to move location to find work
D. Increasing spending on existing industries
Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This is called ?
A. The upward accelerator
B. The downward multiplier
C. The upward PPF
D. The downward mpc