A fall in demand for labour is likely to lead to ?

Related Mcqs:

1. In a competitive labour market firms will hire labour up to the point where the marginal revenue product of labour equals ?

   A. total labour cost
   B. the marginal product
   C. the price of the product
   D. the wage rate

2. Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?

   XA. wages and rents should fall in Country A
   B. wages and rents should rise in Country A
   C. wages should rise and rents should fall in Country A
   D. wages should fall and rents should raise in Country A

3. An increase in aggregate demand is more likely to lead to demand pull inflation if ?

   A. Aggregate supply is perfectly elastic
   B. Aggregate supply is Perfectly inelastic
   C. Aggregate supply is unit elastic
   D. Aggregate supply is relatively elastic

4. A decrease in the supply of labour is likely to lead to ?

   A. A lower equilibrium wage and lower quantity of labour
   B. A lower equilibrium wage and higher quantity of labour
   C. A higher equilibrium wage and higher quantity of labour
   D. A higher equilibrium wage and lower quantity of labour

5. Demand for labour is more likely to be wage inelastic if ?

   A. Wages are a small proportion of total costs
   B. Demand for the final product is price elastic
   C. It is easy to replace labour
   D. Capital is a good substitute for labour

6. Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This is called ?

   A. The upward accelerator
   B. The downward multiplier
   C. The upward PPF
   D. The downward mpc

7. In a perfectly competitive labour market firms are wage takers and the marginal cost of labour equals?

   A. The average cost of labour
   B. The marginal product
   C. The marginal revenue
   D. The total cost of labour

8. If interest rates rise then costs are likely to _______ and demand is likely to _________?

   A. rise, fall
   B. rise; rise
   C. fall; fall
   D. fall; rise

9. If VAT rates rise, then costs are likely to ___ and demand is likely to ____?

   A. rise; rise
   B. rise; fall
   C. fall; fall
   D. fall; rise

10. The substitution effect of a rise in the price of labour will ____ the quantity of labour and the output, effect will ____ it

    A. increase; increase
    B. increase; reduce
    C. reduce; reduce
    D. reduce; increase