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Edexcel A-Level Economics A2 3.3.4 1a Factors That Influence the Demand for Labour to a Particular Labour Occupation Questions

Practise identifying why firms demand more or fewer workers when final demand and revenue change, using airline employment evidence.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
A2

Exam points

  • infer labour-demand changes from shifts in product revenue and explain resulting hiring or redundancies

Edexcel A-Level Economics A2 3.3.4 1a Factors That Influence the Demand for Labour to a Particular Labour Occupation Questions question 1

[Maximum number: 1]

Total revenue for American Airlines fell from $ 45.77 billion in 2019 to $ 17.34 billion in 2020. In response, American Airlines made 31000 staff redundant.

Which one of the following was the most likely reason for these staff redundancies?

A

The number of airline passengers rose

B

The derived demand for labour fell

C

Government employment subsidies to airlines increased

D

Taxation on airline employees decreased

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