1. A government is worried about the increasing monopsony power of employers in the wage
Which policy combination is most likely to improve the wages and employment prospects of
|Trade union powers||Immigration controls||National minimum wage|
2. The diagram shows the labour market for fruit pickers in country X.
If the market was originally in equilibrium, what would happen to wages and employment if a
minimum wage of W were imposed?
3. What would not be regarded as an example of a possible negative impact of rapid economic
A Greater production could result in greater atmospheric pollution.
B A higher level of income could cause a higher balance of trade deficit.
C Increased AD could cause domestic inflation to increase.
D Increased GDP could generate greater tax receipts.
4. How can GDP at market prices be calculated if GDP at factor cost is known?
A add taxes, add subsidies
B add taxes, subtract subsidies
C subtract taxes, add subsidies
D subtract taxes, subtract subsidies
5. Which combination indicates that GDP per capita is likely to be an accurate indicator of living
standards in a country over time?
|Income distribution||Hidden economy as % of GDP||Quality of goods and services produced|