1. There is a decrease in the supply of female labour. What will be the likely effect on male and female wages?

	Male wages	Female wages
A	Decrease	Decrease
B	Decrease	Increase
C	Increase	Decrease
D	Increase	Increase

2. Which criteria are used in official labour market surveys to determine whether a person should be
classified as being unemployed?

3. To increase the number of cleaners at a local school from 10 to 11, the employer has to raise the
hourly rate of pay from $3.00 to $3.25.
What is the marginal cost of labour per hour to the employer?
A $0.25 B $3.25 C $5.75 D $33.25

4. What would result in a reduction in labour costs per unit of output?
A an increase in average earnings which is less than the increase in employment
B an increase in labour productivity which is less than the increase in average earnings
C an increase in output which is greater than the increase in labour earnings
D an increase in wage rates which is greater than the increase in output per worker

5. Out of any addition to national income, 25% is spent on imports, 15% is paid in taxes, 10% is
saved and the rest is spent on domestically produced goods.
What is the value of the multiplier?
A 2 B 2.5 C 4 D 10

Answers