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CXC CAPE · · Economics

The labour market and wages
Practice Questions

40 CXC CAPE Economics questions on The labour market and wages, each with instant feedback and a full examiner-style mark scheme.

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✨ Revision guide includes key terms, worked examples and exam technique for The labour market and wages.

Try 2 sample questions on The labour market and wages

Question 1 · 1 mark · Difficulty 1/3

What does it mean that demand for labour is a derived demand?

  1. It arises from demand for the product the labour produces
  2. It is derived from the wage the employer is willing to pay
  3. It depends on the number of workers available
  4. It is calculated from the firm's total wage bill
Show answer & explanation
✓ Answer: A — It arises from demand for the product the labour produces
Award 1 mark. Firms want workers not for their own sake but for what they produce, so a collapse in product demand cuts labour demand without anything about the workers changing.
Question 2 · 1 mark · Difficulty 1/3

How is marginal revenue product calculated?

  1. Total revenue divided by the number of workers
  2. Marginal physical product divided by the wage
  3. The wage paid divided by output per worker
  4. Marginal physical product multiplied by the price of the output
Show answer & explanation
✓ Answer: D — Marginal physical product multiplied by the price of the output
Award 1 mark. It measures what the extra worker is worth to the firm, which is what the hiring decision turns on.
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20 questions · 25 min · free

CXC CAPE Economics: The labour market and wages FAQ

Is Kramizo free for CXC CAPE students preparing for Economics?
Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix The labour market and wages practice with other Economics topics or even switch to a totally different CXC CAPE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the The labour market and wages questions aligned to the official CXC CAPE Economics syllabus?
Every question is written against the published CXC CAPE Economics specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CXC CAPE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CXC CAPE.
How is The labour market and wages typically tested on CXC CAPE Economics papers?
The labour market and wages appears across multiple question types on real CXC CAPE Economics papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

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