Labour Market Forces and Government Intervention Quiz by Shubhrata Shrestha | Jul 1, 2025 | 0 comments Labour Market Forces and Government Intervention Quiz 1. What does it mean when labour demand is described as ‘derived’? A. It is determined by trade unions B. It results from the demand for capital C. It arises from demand for the goods labour helps produce D. It is fixed regardless of market conditions None 2. Which of the following is most likely to shift the demand curve for labour to the right? A. Increase in wage rate B. Increase in productivity C. Decrease in working hours D. Fall in capital costs None 3. In the Marginal Revenue Product theory, what does MRP stand for? A. Marginal Rent Payment B. Marginal Revenue Product C. Market Return Price D. Monetary Revenue per unit None 4. Which factor is a non-wage determinant of labour supply? A. Working conditions B. Level of taxation C. Wage elasticity D. Wage rate None 5. What happens when a government sets a minimum wage above the equilibrium level? A. Employment increases in all sectors B. Labour surplus (unemployment) may occur C. All firms pay more without reducing employment D. The supply curve for labour shifts left None 6. What best describes a monopsony in the labour market? A. One seller of labour B. Many employers hiring identical workers C. One employer dominates hiring in a market D. Government sets all wages centrally None 7. Trade unions typically aim to: A. Increase labour supply B. Raise wages and improve conditions C. Lower firm costs D. Reduce wage differentials None 8. Wage differentials can result from all the following EXCEPT: A. Equal job conditions and skills B. Differences in productivity C. Geographical immobility D. Risk and unpleasantness of jobs None 9. What are transfer earnings? A. The minimum payment required to keep a factor in current use B. Wages earned from part-time jobs C. Unemployment benefits D. All earnings above market rate None 10. A perfectly competitive labour market is characterised by: A. Wage takers and equilibrium wage determined by demand and supply B. Monopsony buyers setting the wage C. Government determining all wages D. Unions fixing the wage levels None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
