Assignment on Labor Market
marks 20
Question 1
The following figures relate to the demand and supply of office cleaners at certain wage
rates. The demand and supply figures are in (000s):
WAGE RATE (£ per hour) DEMAND (000) SUPPLY (000)
10
20
80
9
30
75
8
40
70
7
50
65
6
60
60
5
70
55
4
80
50
3
90
45
2
100
40
1. Plot the demand and supply curves and show the market wage rate and
employment level. 6 marks
2. Illustrate and comment on the likely impact of a national minimum wage of £9.00
per hour for all workers. 2 marks
3. On your graph, sketch the likely effect of increased migration of cleaners from a
low wage economy. 2 marks
Question 2
Show the impact of the following; a, b, c and d on the demand or supply of coal miners
in West Virginia. In each case, sketch a demand and supply diagram to illustrate your
answer. Give a reason for your choice. 4 marks
a. The price of coal rises.
b. New coal-mining equipment is invented that is cheap and requires few workers
to run.
c. Several major companies that mine coal open factories in West Virginia.
d. Government imposes costly new regulations to make coal-mining a safer job.
Question 3
a. Define: 6 marks
Piece rate
National minimum wage
Commission