Labour Market MC Question (1 Viewer)

[swagmeister]

So with this question why is the answer A not D?

Decreased incentives to work long hours means that firms will need more labour in order to meet a certain output so it would lead to increase demand for labour right? On the other hand, government subsidies for apprenticeships, that sounds like a supply shift to me because more people will become skilled and enter the labour force.

Thoughts?

 

[Ekman]

A, B, C are all supply-side factors, as they impact the level of supply of labour. Also one could argue that for A, more apprenticeships could lead to less demand for labour (you are getting apprentices who can work for you for free, so why need to hire?). And D is the only demand-sided factor, as the reason you mentioned above.

 

[swagmeister]

A, B, C are all supply-side factors, as they impact the level of supply of labour. Also one could argue that for A, more apprenticeships could lead to less demand for labour (you are getting apprentices who can work for you for free, so why need to hire?). And D is the only demand-sided factor, as the reason you mentioned above.

I reckon that the reason that CSSA chose A as the correct answer must have been that it will increase employee skills, and this will increase demand for labour due to increases in skills. But its a pretty ambiguous question.

You reckon that they answer must be wrong?

 

[Ekman]

I reckon that the reason that CSSA chose A as the correct answer must have been that it will increase employee skills, and this will increase demand for labour due to increases in skills. But its a pretty ambiguous question.

You reckon that they answer must be wrong?

Hang on, I re read the first sentence of the question above the graph. It says "over the long term", so it makes sense if it would be A. However if they didn't say long term, then D would be the answer.

 

[swagmeister]

Hang on, I re read the first sentence of the question above the graph. It says "over the long term", so it makes sense if it would be A. However if they didn't say long term, then D would be the answer.

Just says 'over time'. Pretty ambiguous tbh. I think the markers were looking at it in terms of increasing skills and thus increasing demand for labour and lowering structural unemployment, wheras for D you could say that's a supply shift to the left cause they don't want to work long hours so they lower supply.

Hate questions like this!