Lesson 3.5.2

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

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

In partnership with Revision Ninja

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.

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 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

All Pearson Edexcel Economics quizzes