MCQ Questions:

1. What is an example of occupational mobility of labor?
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 call center workers

2. What is a function of a trade union?
A) to negotiate workers’ contracts
B) to promote workers to more responsible jobs
C) to recruit workers for the firm
D) to supervise the workers in the firm

3. One way in which a government may seek to increase geographical mobility of labor 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) subsidizing declining industries

4. 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

5. 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

6. 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

7. What is the main purpose of a trade union?
A) To achieve profit maximization
B) To encourage free trade
C) To promote private ownership of industry
D) To protect the interests of its members

8. A group of workers in a firm join a trade union. What would the union be expected to do?
A) arrange for labor-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

9. 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 labor 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

10. 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 workers
D) the establishment of a local

MCQ Answers:

1. Answer: D (Farm workers retrain as call center workers)
2. Answer: A (to negotiate workers’ contracts)
3. Answer: C (providing relocation expenses for workers)
4. Answer: D (an increase in the productivity of hotel managers in Mauritius)
5. Answer: D (Some actors have a unique talent)
6. Answer: D (Factory workers use more productive equipment)
7. Answer: D (To protect the interests of its members)
8. Answer: B (discuss safety issues in the workplace with the employer)
9. Answer: B (There is a high supply of labor because the work is unskilled)
10. Answer: B (the development of a new and profitable brand of the company’s product)