Lesson 3.5.1
3.5.1 Demand for labour Quiz: Pearson Edexcel Economics, Unit 3
20 questions
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Lesson 3.5.1, Demand for labour: 20 multiple choice questions for the Pearson Edexcel Economics (9EC0), Unit 3: Theme 3: Business behaviour and the labour market, written with Revision Ninja.
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The 20 questions
-
Labour demand depends directly on the demand for what?
- Final goods
- Labour supply
- Capital equipment
- Raw materials
-
Which outcome is measured by a firm's marginal revenue product?
- Total profit made
- Average output produced
- Marginal cost incurred
- Extra revenue generated
-
How is Marginal Revenue Product calculated in a competitive market?
- MPP over MR
- MPP times MR
- MPP plus wage
- MR minus MC
-
Which factor causes a shift in the demand curve for labour?
- Unemployment benefit cuts
- Product demand changes
- Income tax cuts
- Wage rate changes
-
A worker adds 5 units of output, and each unit sells for £8 in marginal revenue. What is the MRP?
- £40
- £3
- £13
- £1.60
-
What happens to labour demand when demand for the firm's product increases?
- Increases
- Remains unchanged
- Decreases
- Becomes vertical
-
How does an increase in worker productivity affect the demand for labour?
- Shifts right
- Moves along curve
- Shifts left
- Becomes inelastic
-
What happens to labour demand if capital becomes significantly cheaper than labour?
- Increases
- Decreases
- Remains constant
- Becomes perfectly elastic
-
Which condition makes the demand for labour more wage elastic?
- Low worker mobility
- Easy capital substitution
- Inelastic product demand
- Small cost share
-
Which variable directly determines the marginal revenue product of labour?
- Unemployment rate
- Worker age
- Product price
- Income tax rate
-
Until what point will a profit-maximising firm continue hiring workers?
- MPP equals wage
- Total revenue peaks
- MRP reaches zero
- MRP equals wage
-
A firm's marginal physical product of labour is 10 units for the first worker, 8 for the second and 6 for the third. Output sells at £5. What is the MRP of the third worker?
- £15
- £30
- £40
- £10
-
Why does the demand curve for labour slope downwards?
- Diminishing marginal returns
- Rising wage rates
- Fixed capital stock
- Increasing economies
-
A monopolist's MR is £4 and a worker's marginal physical product is 7 units. What is the worker's MRP?
- £11
- £70
- £28
- £40
-
In an imperfectly competitive market, how does marginal revenue compare to price?
- Exactly double price
- Equal to price
- Higher than price
- Lower than price
-
In which market structure can introducing a minimum wage potentially increase total employment?
- Monopsony
- Perfect competition
- Oligopoly
- Monopoly
-
A worker has an MRP of £15 and a wage of £14. What should a profit-maximising firm do?
- Fire the worker
- Leave position vacant
- Hire the worker
- Lower the wage
-
If a 10% wage rise reduces labour demand by 15%, how is labour demand described?
- Wage elastic
- Perfectly inelastic
- Unit elastic
- Wage inelastic
-
Which event will cause a firm's demand curve for labour to shift to the left?
- Falling wage rate
- Rising product demand
- Falling product price
- Rising labour productivity
-
What economic concept explains why demand for workers falls when demand for output decreases?
- Composite demand
- Derived demand
- Joint supply
- Cross elasticity
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