Demand for Labour Quiz

What is the quantity of labour in labour markets called?

• Workforce

• Employment

• Staff

• Personnel

What happens to the demand for labour if wages increase?

• Demand increases

• Demand decreases

• Demand remains the same

• Demand fluctuates randomly

In the context of labour markets, what does a downward sloping demand curve indicate?

• Higher wages lead to more demand for labour

• Higher wages lead to less demand for labour

• Wages have no effect on demand for labour

• Wages and demand for labour are unrelated

What is the relationship between wage and employment in the demand for labour?

• Direct relationship

• Inverse relationship

• No relationship

• Random relationship

What is the main factor that influences the demand for labour?

• Consumer trends

• Production needs

• Weather conditions

• Political stability

What is the effect of a higher wage on the cost for businesses?

• Reduces cost

• Increases cost

• No effect on cost

• Random effect on cost

Which of the following can cause a contraction in labor demand?

• Decrease in trade union power

• Increase in National Minimum Wage

• Decrease in wage rate

• Increase in employment

What effect does an increase in trade union power have on labor demand?

• Increases labor demand

• Decreases labor demand

• No effect on labor demand

• Stabilizes labor demand

What is one reason employers might hire fewer workers?

• Decrease in National Insurance

• Increase in wage rate

• Decrease in trade union power

• Increase in labor supply

What is a potential consequence of increased trade union power?

• Lower wages

• Higher wages

• No change in wages

• Decreased labor costs