A firm introduces technology that makes its remaining workers more productive but also automates some of their tasks. What is the most accurate conclusion about its demand for labour?
It must rise because productivity is higher
It must fall because every machine replaces every worker
It is unchanged because the two effects are always equal
It depends on whether the productivity effect or the replacement of tasks has the greater influence
34 exam-style questions on OCR GCSE Economics 2.7 The labour market, covering 2.7.1 Role and operation of the labour market, 2.7.2 Determination of wages, 2.7.3 Explain gross and net pay, and 2.7.4 Calculate gross and net pay. Each one has a worked solution and a mark scheme showing where the marks go.