Demand for locally caught fish falls. At the same time, safety improvements make deckhand work less dangerous without changing workers’ output per hour or firms’ employment costs.
Which outcome in the labour market for deckhands can be predicted with certainty?
The equilibrium wage paid to deckhands rises
The equilibrium number of deckhands employed falls
The equilibrium number of deckhands employed rises
The equilibrium wage paid to deckhands falls
80 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.