Lesson 3.5.2

3.5.2 Supply of labour Quiz: Pearson Edexcel Economics, Unit 3

20 questions

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Lesson 3.5.2, Supply of 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

  1. What term describes the total number of workers willing and able to work at a given wage?

    • Marginal output
    • Labour demand
    • Derived demand
    • Labour supply
  2. Which non-monetary factor directly affects the supply of labour to a particular occupation?

    • Final product price
    • Raw material costs
    • Working conditions
    • Labour productivity
  3. What prevents workers from moving between regions to take available jobs?

    • Derived demand
    • Wage inelasticity
    • Occupational immobility
    • Geographical immobility
  4. What type of immobility occurs when workers lack the required skills to change jobs?

    • Frictional immobility
    • Geographical immobility
    • Structural redundancy
    • Occupational immobility
  5. Why might an individual's labour supply curve bend backwards at very high wages?

    • Substitution effect dominates
    • Wages drop automatically
    • Income effect dominates
    • Labour productivity falls
  6. Which change is most likely to increase the supply of labour to a specific occupation?

    • Longer training period
    • Higher relative pay
    • Lower non-pecuniary benefits
    • Higher entry qualifications
  7. Which factor makes the supply of labour to an occupation more wage elastic?

    • Short training period
    • High entry qualifications
    • Highly specialised skills
    • Long apprenticeship required
  8. Unfilled vacancies in one region alongside high unemployment in another region indicates which market failure?

    • Perfect market knowledge
    • Excess labour demand
    • Occupational immobility
    • Geographical immobility
  9. Which government policy is most effective in reducing occupational immobility of labour?

    • Regional transport links
    • Raising maximum wages
    • Housing subsidies
    • Retraining programmes
  10. What shape does an individual worker's labour supply curve typically take at very high wage rates?

    • Perfectly elastic
    • Upward sloping
    • Vertically fixed
    • Backward bending
  11. Which of the following is a non-pecuniary benefit of a job?

    • Basic salary
    • Performance bonus
    • Flexible working hours
    • Overtime pay
  12. What type of immobility occurs when workers lack the required qualifications for open jobs?

    • Pecuniary immobility
    • Occupational immobility
    • Industrial immobility
    • Geographical immobility
  13. How does net inward migration into a country affect its market labour supply curve?

    • Shifts it left
    • Shifts it right
    • Causes upward movement
    • Causes downward movement
  14. What is the term for a wage premium paid to cover costly training or hazardous conditions?

    • Monopsony wage markup
    • Compensating wage differential
    • Minimum wage floor
    • Derived demand premium
  15. Which policy directly helps to reduce geographical immobility in the labour market?

    • Affordable housing provision
    • Corporation tax increases
    • Import tariffs
    • Maximum wage caps
  16. Labour supply is L = 20 + 4W. What quantity of labour is supplied at a wage of £5?

    • 20 workers
    • 80 workers
    • 25 workers
    • 40 workers
  17. If labour supply is L = 20 + 4W, by how much does L increase when W rises from £5 to £7?

    • 4 workers
    • 8 workers
    • 48 workers
    • 20 workers
  18. What main factor makes the supply of labour inelastic in the short run?

    • Flexible working hours
    • Low skill requirements
    • High unemployment rates
    • Long training periods
  19. Which economic issue is caused by market failure due to labour immobility?

    • Cyclical unemployment
    • Demand-pull inflation
    • Structural unemployment
    • Cost-push inflation
  20. How does the elasticity of supply of labour generally change over a longer time period?

    • Becomes negative
    • Remains unchanged
    • Becomes more elastic
    • Becomes perfectly inelastic

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