Question 1

The Wage Curve is&#10;A) Explained by workers receiving the same rate of pay regardless of the level of unemployment in their own region.&#10;B) Identical to the Phillips Curve&#10;C) An equilibrium locus describing temporary or transitory phenomena&#10;D) A representation of the relationship between the real wage rate and the level of unemployment in particular regions

Accepted Answer

The Wage Curve is a representation of the relationship between the real wage rate and the level of unemployment in particular regions. It shows that there is an inverse relationship between real wages and unemployment, meaning that as unemployment decreases, real wages tend to increase.

Question 2

Low pay should be measured in relative rather than absolute terms if one is concerned with&#10;A) Equity issues&#10;B) Poverty&#10;C) A fixed proportion of the workforce

Accepted Answer

If one is concerned with equity issues, measuring low pay in relative terms is more important because it takes into account the distribution of income and the standard of living in a particular society or country. Absolute measures of low pay only consider the numerical value of wages and do not take into account the cost of living or the purchasing power of the wage. Therefore, using relative measures of low pay ensures that there is a more equitable distribution of wages across society.

Question 3

The case against minimum wage legislation rests on the fact that&#10;A) It always reduces employment&#10;B) The effects on particular workers are generally short-lived&#10;C) wage spill-overs mean that the lowest paid are not helped

Accepted Answer

B

Question 4

Active labour market policies are those which&#10;A) Provide income support for the unemployed&#10;B) Attempt to make it easier for individuals to enter the labour market&#10;C) Assist with the relocation of labour among different sub-markets&#10;D) Emphasise employment protection legislation.

Accepted Answer

B) Active labour market policies are designed to reduce unemployment by making it easier for individuals to enter the labour market. This can be done through a variety of measures such as job training programs or subsidised employment.

C) Active labour market policies can also assist with the relocation of labour among different sub-markets, such as from declining industries to growing ones, by providing training or job placement services.

Question 5

The Beveridge Curve measures&#10;A) The number of vacancies and the level of unemployment&#10;B) The change in the number of vacancies and the change in the level of unemployment&#10;C) The optimal combination of unemployment and vacancies

Accepted Answer

The Beveridge Curve measures the relationship between the number of job vacancies and the level of unemployment. As the number of job vacancies increases, unemployment should decrease as more opportunities become available for job seekers. Therefore, choice A is the correct answer as it reflects the correlation between these two variables.

Question 6

Equal pay for work of equal value by men and women means that&#10;A) Those whose value of output as measured by the market is identical should receive the same rate of pay&#10;B) Men and women should receive the same rate of pay where the work they do is rated as equivalent under a job evaluation scheme&#10;C) Allowance is made for the fact that some jobs are riskier than others

Accepted Answer

Equal pay for work of equal value by men and women means that men and women should receive the same rate of pay where the work they do is rated as equivalent under a job evaluation scheme. This is based on the principle of fair pay and non-discrimination. It ensures that wages are not determined by gender or other irrelevant factors, but by the value of the work performed. Option A only considers market value, which does not necessarily reflect the value of work, and option C refers to risk, which is not necessarily related to the value or nature of work.

Deck 10: Labour Market Policy