CAIE A-Level Economics 8.3.6 Labour Supply Shifts and Movements

CAIE A-Level Economics 8.3.6 Labour Supply Shifts and Movements
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise distinguishing wage-driven movement along labour supply from shifts caused by migration, training or working conditions and tracing new equilibrium wages and employment.

How this is tested

  • draw a leftward supply shift after outward migration and identify higher wage with lower employment
  • draw a rightward occupational supply shift after training expands eligible workers
  • separate a wage-induced work-leisure movement from a non-wage shift in the supply curve

Question 13

[Maximum number: 1]

A firm is faced with a shortage of labour. It decides to introduce its own training scheme for school leavers.

Which effect is this most likely to have on the firm?

A

a decrease in the number of workers it employs

B

a decrease in the productivity of its workforce

C

an increase in the geographical mobility of its labour

D

a shift of the supply curve for its labour to the right