top of page
Untitled design(5).png

Economics multiple choice questions

GCSE and O level

Labour Market

Multiple Choice Questions and Answers

What is an example of occupational mobility of labour?

A Japanese car manufacturer locates in England
B A nurse returns to work after her children have grown up
C A student takes an evening job in a restaurant
D Farm workers retrain as callcentreworkers [J10/P1/Q13]

Answer is D

What is a function of a trade union?

A. to negotiate workers’ contracts
B. to promote workers
C. to more responsible jobs
D. to recruit workers for the firm to supervise the workers in the firm(J10/P1/Q16]

Answer is A

One way in which a government may seek to increase geographical mobility of labour is by

A controlling firms locating in areas of low employment
B giving grants to firms moving into areas of high unemployment
C providing relocation expenses for workers
D subsidising declining industries (J10/ P1/Q29)

Answer is C

Which change would be most likely to cause the earnings of hotel managers in Mauritius to rise more than the earnings of sugar cane workers in Mauritius?
A a decrease in the number of tourists visiting Mauritius
B a decrease in the supply of sugar cane workers in Mauritius
C an increase in the price of sugar cane from Mauritius
D an increase in the productivity of hotel managers in Mauritius(N10/P1/Q13]

Answer is D

There are actors who earn extremely high incomes ’ What best explains this?

A Acting is a popular career
B Actors have regular employment
C Actors work short hours
D Some actors have a unique talent (N10/P1/Q17]

Answer is D

Why might factory workers have higher wage rates than agricultural workers?

A Factory workers are in greater supply
B Factory workers face fewer risks of accidents
C Factory workers have cleaner working conditions
D Factory workers use more productive equipment [J11/P1/Q14]

Answer is D

What is the main purpose of a trade union?

A To achieve profit maximisation
B To encourage free trade
C To promote private ownership of industry
D To protect the interests of its members (J11/P1/Q15]

Answer is D

A group of workers in a firm join a trade union

What would the union be expected to do?

A arrange for labour-saving technology to be introduced
B discuss safety issues in the workplace with the employer
C ensure job security by promoting the firm’s products through advertising
D negotiate new contracts with major buyers of the firm’s products(N11/P1/Q17]

Answer is B

Cleaning the streets can be an unpleasant job and yet in many countries it is badly paid What is likely to be the reason for this?

A There is a high degree of trade union membership among these workers
B There is a high supply of labour because the work is unskilled
C There is a high demand for staff in busy urban areas
D There is a long working year because there are few holidays [J12/P1/Q11]

Answer is B

What might be an advantage to a trade union when arguing for an increase in its members’ pay?

A an increase in imports of a similar product
B the development of a new and profitable brand of the company’s product
C the development of new machines requiring fewer worker
D the establishment of a local (J12/P1/Q12]

Answer is B

Changes in demand mean that the government of Bangladesh hopes to switch some production from clothes made by low-paid, unskilled workers to medicines produced by highlytrained technicians Which policies would enable Bangladesh to achieve this switch in employment and production?

A close clothes factories and decrease imports
B encourage immigration of foreign labour and introduce tariffs on clothing
C invest in education and purchase new machines
D substitute labour for machines and encourage emigration of workers from Bangladesh (J12/P1/Q26]

Answer is C

On average, doctors earn more than bus drivers Which change would be likely to reduce the earnings gap between doctors and bus drivers?
A a decrease in the profits earned by bus companies
B a decrease in the qualifications needed to be a doctor
C an increase in demand for medical care
D an increase in the number of people passing the driving test(N12/P1/Q11]

Answer is B

What could reduce the ability of a trade union to gain a pay rise for its members in a shoe factory?
A an increase in sales of shoe exports
B a rise in the demand for shoes
C arise in the productivity of shoe workers
D more people willing to work in the shoe industry (N12/P1/Q12]

Answer is D


Which of the following is most likely to limit wage increases in an industry?

A an increased demand for the industry’s product
B arise in the industry’s profits
C a rise in wages for workers in similar jobs
D the replacement of workers with robots [J13/P1/Q13]

Answer is A


What is a function of a trade union?

A to negotiate workers’ contracts
B to promote the worker to more responsible jobs
C to recruit workers for the firm
D to supervise the workers in the firm

(J13/P1/Q14)

Answer is A

A worker's choice of occupation can be influenced by wage and non-wage factors What is a non-wage factor when choosing to work in a factory?

A The bonuses paid for increases in productivity
B changes in hourly rates for items produced
C financial rewards for length of service
D opportunities for promotion and advancement [N13/P1/Q12]

Answer is D

When will a trade union find it easier to achieve higher wages for its members?
A when consumers demand more of the product made
B when the company has a decrease in profits
C when the cost of raw materials increases
D when unemployment increases [N13/P1/Q13]

Answer is A


In a particular industry, male workers on average are paid more than female workers What might explain this?
A Female workers are less likely to take time off work
B Female workers are more likely to be in trade unions
C Male workers have higher qualifications
D Male workers live nearer to their place of work [J14/P1/Q9]

Answer is C

A trade union is negotiating a wage rise for its members What will increase the chance of the wage rise being granted?

A The company’s product has many substitutes
B The economy is entering a period of recession
C The government has made strike action illegal
D Wages are a small part of the company’s costs [J14/P1/Q11]

Answer is D

Subscribe to the Economics Study Pack and get access to
Economics Multiple Choice Workbook

Practice hundreds of MCQ questions, clasified topic by topic.

 

WORKBOOK CONTENTS:

  • Cambridge past paper questions classified by topic.

  • 120 A level (9706)  Questions

  • 145 AS level (9706) Questions

  • 135 O level (2281) Questions

  • Answers EXPLAINED

Economics Study Pack
bottom of page