Which of the following conditions is most likely to cause the quantity of labour supplied to an industry to increase more than proportionally to an increase in the wage rate?
The industry requires highly specialized professional qualifications.
There is a large pool of unemployed workers who already possess the necessary skills.
Labour costs represent a very small percentage of the firm's total costs.
It is difficult and costly for employers to substitute capital for labour.
11 exam-style questions on OCR A Level Economics Supply of labour. Each one has a worked solution and a mark scheme showing where the marks go.