Trade integration may have an impact on labour markets. As a result of trade integration two industries of an economy face very different experiences. One industry is expanding while the other is shrinking. What would be a plausible effect on a labour market with rigidities?Group of answer choicesIncrease in involuntary unemploymentAll answers are correctPossible increase in inequalityAn increase support for protectionism

In what way has the European integration impacted labour markets and the debates around them?Group of answer choicesDecreasing social protectionIncreasing calls for social harmonisationDecreasing labour mobilityDecreasing wages (on average)

According to new trade theory, what is most likely to be a result of market expansion due to trade?

Intra-industry trade will tend to dominate trade flows when which of the following exists?A) large differences between relative country factor availabilitiesB) small differences between relative country factor availabilitiesC) uneven distribution of abundant resources between two countriesD) homogeneous products that cannot be differentiatedE) constant cost industries

Unemployment may rise if trade unions negotiate a wage which is: below the market wage, causing a shortage of labour. below the market wage, causing a surplus of labour. above or below the market wage - trade union activities will always cause some level of unemployment. above the market wage, causing a surplus of labour. above the market wage, causing a shortage of labour.

Which one of the following is most likely to cause increased unemployment in an economy?A A decrease in the economy’s central bank interest rate.B An increase in the economy’s money supply.C A competitive devaluation of the economy’s currency.D An increase in protectionism by the economy’s trade partners.