Practise analysing labour demand, supply, MRP, wage determination, monopsony and intervention using diagrams, calculations and evidence on employment, rent and transfer earnings.
The chart gives information about the average daily wage rate for all industries in India.
What could have caused this trend in wage rates?
an increase in capital-intensive production
an increase in the number of industrial workers
an increase in the number of people unemployed
an increase in the productivity of labour
When will a profit-maximising firm employ the optimum number of workers?
when the average revenue product of labour equals the average cost of hiring workers
when the marginal revenue product of labour equals the average cost of hiring workers
when the marginal revenue product of labour equals the marginal cost of hiring workers
when the marginal revenue product of labour equals the trade union supplied cost of workers
What is not a factor affecting the supply of labour?
emigration rates
labour participation rate
labour productivity
unemployment benefits