Practise 32 real questions on Labour market, wages and unemployment from 2021 to 2026. See the answer and explanation as soon as you answer.
Labour market, wages and unemployment is one of the 8 main topics in our O Level Economics (Cambridge (CAIE) 2281) question bank, and about 8% of its real questions come from it. Tayyari Karo has 32 real questions on this topic from 2021 to 2026, from Paper 1, Paper 2; 27 are multiple choice and marked instantly, and the rest are structured questions with a model answer. By difficulty: 21 medium, 8 easy, 3 hard.
Work through the questions below, then open the explanation for each one. Redo the ones you missed a few days later.
These are real past-paper questions. Think of your answer first, then open the explanation.
What will increase the strength of a trade union of workers who produce cars?
Answer: C. an increase in the number of car workers with trade union membership
More members give greater bargaining power.
A government uses the labour force survey method to calculate unemployment. What is required under this method for a person to be classified as unemployed?
Answer: B. actively seeking work and immediately available for work, but not eligible for benefits
The labour force survey counts those without a job who are available for work and actively seeking it; benefit eligibility is irrelevant.
How might a trade union increase its bargaining power?
Answer: C. by restricting the entry of workers to the industry
Limiting the supply of labour to the industry makes labour scarcer and strengthens the union's position in wage bargaining.
The introduction of a minimum hourly wage in an industry aims to reduce poverty among low-paid workers. What is an advantage to workers of an effective national minimum wage?
Answer: D. Redistribution of a firm's income rewards labour rather than owners.
A minimum wage shifts income from profits to wages, raising low earners' pay; the other options are disadvantages.
Workers in Switzerland earn more on average than workers in Mexico. What is a likely cause of this?
Answer: B. The average worker in Switzerland is more productive than the average worker in Mexico.
Higher productivity raises the value of a worker's output, so employers are willing and able to pay more.
What is not a reason for differences in the earnings of airline pilots in a particular country?
Answer: D. inflation
Inflation affects the general price level and all wages, so it does not explain differences between pilots within one country.
| Session | Paper 1 | Paper 2 |
|---|---|---|
| May/June 2026 | 3 | – |
| May/June 2025 | 5 | – |
| Oct/Nov 2025 | 3 | – |
| May/June 2024 | 4 | 1 |
| Oct/Nov 2024 | 3 | – |
| May/June 2023 | 2 | 1 |
| Oct/Nov 2023 | 1 | – |
| May/June 2022 | – | 1 |
| Oct/Nov 2022 | 3 | 1 |
| May/June 2021 | 2 | 1 |
| Oct/Nov 2021 | 1 | – |
32 real O Level Economics (2281) questions on Labour market, wages and unemployment from 2021 to 2026, from Paper 1, Paper 2. Each one shows the year, session and paper it came from.
Yes. Every question shows the correct answer and a short explanation the moment you answer.
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