Labour Market Equilibrium (HSC SSCE Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What condition defines labour market equilibrium?
What condition defines labour market equilibrium?
Quantity supplied equals quantity demanded
In which direction does the labour supply curve slope?
In which direction does the labour supply curve slope?
Upward from left to right
Why do higher wages encourage more people to work?
Why do higher wages encourage more people to work?
The opportunity cost of leisure increases
What happens to the labour supply curve at very high wage rates?
What happens to the labour supply curve at very high wage rates?
It becomes backward bending
Why does the labour demand curve slope downward?
Why does the labour demand curve slope downward?
Law of diminishing marginal returns
What occurs when wages are above equilibrium?
What occurs when wages are above equilibrium?
Unemployment exists
What happens when wages are below equilibrium?
What happens when wages are below equilibrium?
A labour shortage exists
What results from a rightward shift in the labour demand curve?
What results from a rightward shift in the labour demand curve?
Higher wages and higher employment
What is the most important influence on labour demand?
What is the most important influence on labour demand?
Aggregate demand
How does supply elasticity differ between high-skill and low-skill labour markets?
How does supply elasticity differ between high-skill and low-skill labour markets?
High-skill markets have more inelastic supply