Practise labour market decisions using demand, supply and elasticity evidence, from migration and benefits to wage gaps and mobility.
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?
The number of airline passengers rose
The derived demand for labour fell
Government employment subsidies to airlines increased
Taxation on airline employees decreased
B
The elasticity of demand for agricultural workers in South Africa is estimated to be -0.3 . Which one of the following is the most likely reason for this value of the elasticity of demand for labour?
Labour cannot be easily replaced by capital
Wage rates are relatively high in the agricultural industry
Consumer demand for the final product is price elastic
Productivity is relatively low in the agricultural industry
A
From September 2019 to September 2021 the US labour force participation rate fell.
Which one of the following is most likely to have caused this fall in the supply of labour?
An increase in benefit payments
An increase in net migration
An increase in the wage rate
An increase in productivity
A