Lesson 5.1.2

5.1.2 Factors affecting labour demand and productivity Quiz: OCR Economics, Unit 5

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

In partnership with Revision Ninja

Lesson 5.1.2, Factors affecting labour demand and productivity: 20 multiple choice questions for the OCR Economics (H460), Unit 5: The labour market, written with Revision Ninja.

Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.

Host this setFree Play

The 20 questions

  1. What type of demand best describes the demand for labour in an economy?

    • Inelastic demand
    • Joint demand
    • Derived demand
    • Autonomous demand

  2. What does the abbreviation MRPL stand for in labour economics theory?

    • Minimum revenue price
    • Marginal revenue product
    • Marginal return price
    • Marginal rate product

  3. A worker produces 5 extra units sold at £10 each. What is the worker's MRPL?

    • £15
    • £0.50
    • £50
    • £2

  4. How is labour productivity calculated for a firm over a given period?

    • Profit per worker
    • Capital per worker
    • Total revenue
    • Output per worker

  5. In the short run, what eventually causes the marginal physical product of labour to decline?

    • Economies of scale
    • Diseconomies of scope
    • Increasing cost elasticity
    • Diminishing marginal returns

  6. Which formula correctly calculates the Marginal Revenue Product of Labour?

    • MPPL minus MR
    • MPPL over MR
    • MPPL plus MR
    • MPPL times MR

  7. If capital becomes much cheaper and easily replaces workers, what happens to labour demand?

    • It becomes inelastic
    • It shifts left
    • It remains unchanged
    • It shifts right

  8. An increase in consumer demand for smartphones will cause the demand for smartphone assembly workers to:

    • Shift to left
    • Become downward sloping
    • Remain unchanged
    • Shift to right

  9. Which condition makes the wage elasticity of demand for labour more wage elastic?

    • Inelastic product demand
    • High capital substitutability
    • Low labour ratio
    • Short run horizon

  10. Demand for labour is most wage inelastic when labour costs account for what proportion of total costs?

    • Exactly half
    • A small proportion
    • One hundred percent
    • A large proportion

  11. What effect does an improvement in worker training have on the labour demand curve?

    • Shifts left
    • Shifts right
    • Moves along curve
    • Makes it vertical

  12. A firm adds 1 worker, causing daily output to rise from 100 to 112 units. What is MPPL?

    • 12 units
    • 10 units
    • 112 units
    • 100 units

  13. In a perfectly competitive product market, MRPL is equal to MPPL multiplied by which variable?

    • Capital price
    • Output price
    • Total cost
    • Wage rate

  14. If the price of capital that complements labour falls, what happens to the demand for labour?

    • Falls to zero
    • Increases
    • Stays constant
    • Decreases

  15. Which economic concept measures the responsiveness of labour demand to a change in wages?

    • Wage elasticity
    • Cross elasticity
    • Supply elasticity
    • Income elasticity

  16. When the demand for the final product is highly price elastic, labour demand becomes:

    • Unit elastic always
    • More inelastic
    • Perfectly inelastic
    • More elastic

  17. What economic term describes total output divided by the total number of hours worked?

    • Economies of scale
    • Labour productivity
    • Capital productivity
    • Marginal revenue

  18. If new technology doubles worker efficiency, what happens to the marginal physical product of labour?

    • It shifts upward
    • It stays unchanged
    • It becomes horizontal
    • It shifts downward

  19. A fall in the market selling price of a firm's good will cause its labour demand curve to:

    • Shift right
    • Remain static
    • Become vertical
    • Shift left

  20. The downward slope of the labour demand curve is primarily explained by which economic concept?

    • Law of supply
    • Increasing marginal utility
    • Diminishing marginal returns
    • Scale economies

All OCR Economics quizzes