Economics (AS & A Level) · Oct / Nov 2025 · Paper 33 · Question 9
9708Labour market forces and government intervention
There has been an increase in labour productivity. Which combination of effects is most likely?
- Ashift of demand curve for labour: none; shift of supply curve for labour: inward; effect on wage rate: increase
- Bshift of demand curve for labour: none; shift of supply curve for labour: outward; effect on wage rate: decrease
- Cshift of demand curve for labour: inward; shift of supply curve for labour: none; effect on wage rate: increase
- Dshift of demand curve for labour: outward; shift of supply curve for labour: none; effect on wage rate: increase
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Correct answer: D. shift of demand curve for labour: outward; shift of supply curve for labour: none; effect on wage rate: increase
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