Economics (AS & A Level) · Feb / March 2023 · Paper 32 · Question 12

The diagram shows the supply curve of labour for two separate markets, X and Y. What explains the difference in the gradients of the labour supply curves?

1. AMarket X has a higher marginal revenue product per worker than Y.
2. BMarket X has a higher percentage of its labour belonging to a trade union than Y.
3. CMarket X has higher labour costs as a percentage of total costs than X.
4. DMarket X has more specific skills and training requirements than Y.

As printed in the paper