Cambridge International (CAIE) · 8 Government microeconomic intervention (A Level) · 8.3 Labour market forces and government intervention

Cambridge International (CAIE) Economics past paper questions: Labour market forces and government intervention

Every Cambridge International (CAIE) question on Labour market forces and government intervention from 2023 to 2025: 4 essays, 2 data response questions and 23 multiple choice questions. It covers 7.5 Types of cost, revenue and profit, short-run and long-run production, 7.6 Different market structures, 9.2 Economic growth and sustainability, 9.3 Employment and unemployment and 11.5 Relationship between countries at different levels of development. Each question links to its paper, mark scheme and examiner report.

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Subtopics7.5 Types of cost, revenue and profit, short-run and long-run production 47.6 Different market structures 29.2 Economic growth and sustainability 19.3 Employment and unemployment 111.5 Relationship between countries at different levels of development 1

Essay questions on labour market forces and government intervention

Data response questions on labour market forces and government intervention

Multiple choice questions

  1. A-level Paper 3, November 2025, Q12

    A government intervenes to raise the wages of a group of workers to prevent their exploitation. Where might such government intervention be justified?

  2. A-level Paper 3, June 2025, Q12

    The diagram shows the labour market for a profit maximising industry with a monopsony employer. What will decrease if a minimum wage of W1 is introduced?

  3. A-level Paper 3, June 2025, Q13

    What is not a factor affecting the supply of labour?

  4. A-level Paper 3, June 2025, Q14

    The diagrams show the demand for and supply of labour. Which two areas represent transfer earnings?

  5. A-level Paper 3, March 2025, Q12

    A government’s aim is to reduce real wage rates. Which policy should be used to achieve this aim?

  6. A-level Paper 3, March 2025, Q13

    How is marginal revenue product calculated?

  7. A-level Paper 3, March 2025, Q14

    A teacher currently earns $30 000. She would be willing to continue in that teaching job, provided she earned at least $25 000. Also, she would prefer to remain a teacher than change to her next best alternative employment as an accountant…

  8. A-level Paper 3, November 2024, Q12

    In which situation is the introduction of a minimum wage most likely to raise employment opportunities as well as wages?

  9. A-level Paper 3, November 2024, Q13

    The diagram shows a firm’s initial marginal revenue product of labour curve (MRP1). What could cause the curve to shift to MRP2?

  10. A-level Paper 3, November 2024, Q14

    A firm operates in a perfectly competitive labour market. The table shows the marginal revenue product (MRP) and marginal cost of labour (MCL) for each additional worker employed by this profit-maximising firm. How many units of labour…

  11. A-level Paper 3, June 2024, Q13

    Most workers in a country are employed in the manufacturing sector where they are paid a fixed wage rate per hour. What will lead to an increase in the net advantage of workers currently employed in the manufacturing sector?

  12. A-level Paper 3, June 2024, Q14

    When will a profit-maximising firm employ the optimum number of workers?

  13. A-level Paper 3, June 2024, Q15

    The diagram shows the labour market for farm workers in New Zealand. Which areas represent the economic rent and transfer earnings of the farm workers?

  14. A-level Paper 3, March 2024, Q14

    What would shift the marginal revenue product curve for workers producing electric vehicles to the right?

  15. A-level Paper 3, March 2024, Q15

    The diagram shows a perfectly competitive firm’s average product of labour (APL) and marginal product of labour (MPL) curves. How many workers will the firm employ at a wage of W?

  16. A-level Paper 3, November 2023, Q10

    Firm K operates in a competitive market. Firm L is a monopsony employer. Both firms are operating at an equilibrium level of output. Trade unions are introduced with the result that wages in each firm are increased. What is the likely…

  17. A-level Paper 3, November 2023, Q11

    A backward-sloping supply curve of labour is one where, beyond a certain point, the supply of labour

  18. A-level Paper 3, June 2023, Q13

    What will lead the demand curve for labour to shift to the right?

  19. A-level Paper 3, June 2023, Q16

    Immigrants are awarded entry points according to their ability to fulfil criteria set by the Canadian Government. A new Express Entry system for the immigration of skilled workers was introduced. The diagram shows the change in the…

  20. A-level Paper 3, March 2023, Q11

    The diagram shows an industry’s demand for and supply of labour. Initially, the labour market is in equilibrium. The government introduces a minimum wage of OW0. What will be the effect on the level of employment in the industry?

  21. A-level Paper 3, March 2023, Q12

    The diagram shows the supply curve of labour for two separate markets, X and Y. What explains the difference in the gradients of the labour supply curves?

  22. A-level Paper 3, March 2023, Q13

    The table shows the main characteristics of employment in two occupations. What can definitely be deduced from the table?

  23. A-level Paper 3, March 2023, Q30

    Labour from low-income countries often migrates to high-income countries and finds jobs. How would such a movement of labour be likely to affect the economic growth and the pressure on wage rises in the high-income country?

Question text is quoted from the question papers, © Cambridge University Press & Assessment (UCLES), for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.